BILL ANALYSIS H.B. 4492 By: Eiland Insurance Committee Report (Unamended) BACKGROUND AND PURPOSE The Securities and Exchange Commission (SEC) has recently adopted a new rule relating to indexed annuities and requiring the registration of indexed annuities with the SEC. The current rules and conduct of the National Association of Securities Dealers applies only to variable annuities. H.B. 4492, in order to comply with the new federal regulation, establishes that compliance with the conduct rules of the Financial Industry Regulatory Authority satisfies the requirements for suitability of certain annuity transactions for recommendation of annuities under the federal Securities Act of 1933. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 4492 amends the Insurance Code to establish that compliance with the conduct rules of the Financial Industry Regulatory Authority, rather than the National Association of Securities Dealers, relating to suitability satisfy the requirements for suitability of certain annuity transactions for the recommendation of annuities registered under the federal Securities Act of 1933 or rules or regulations adopted under that act, rather than for the recommendation of variable annuities. EFFECTIVE DATE September 1, 2009.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 4492
By: Eiland
Insurance
Committee Report (Unamended)
H.B. 4492
By: Eiland
Insurance
Committee Report (Unamended)
BACKGROUND AND PURPOSE The Securities and Exchange Commission (SEC) has recently adopted a new rule relating to indexed annuities and requiring the registration of indexed annuities with the SEC. The current rules and conduct of the National Association of Securities Dealers applies only to variable annuities. H.B. 4492, in order to comply with the new federal regulation, establishes that compliance with the conduct rules of the Financial Industry Regulatory Authority satisfies the requirements for suitability of certain annuity transactions for recommendation of annuities under the federal Securities Act of 1933.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 4492 amends the Insurance Code to establish that compliance with the conduct rules of the Financial Industry Regulatory Authority, rather than the National Association of Securities Dealers, relating to suitability satisfy the requirements for suitability of certain annuity transactions for the recommendation of annuities registered under the federal Securities Act of 1933 or rules or regulations adopted under that act, rather than for the recommendation of variable annuities.
EFFECTIVE DATE September 1, 2009.
BACKGROUND AND PURPOSE
The Securities and Exchange Commission (SEC) has recently adopted a new rule relating to indexed annuities and requiring the registration of indexed annuities with the SEC. The current rules and conduct of the National Association of Securities Dealers applies only to variable annuities.
H.B. 4492, in order to comply with the new federal regulation, establishes that compliance with the conduct rules of the Financial Industry Regulatory Authority satisfies the requirements for suitability of certain annuity transactions for recommendation of annuities under the federal Securities Act of 1933.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 4492 amends the Insurance Code to establish that compliance with the conduct rules of the Financial Industry Regulatory Authority, rather than the National Association of Securities Dealers, relating to suitability satisfy the requirements for suitability of certain annuity transactions for the recommendation of annuities registered under the federal Securities Act of 1933 or rules or regulations adopted under that act, rather than for the recommendation of variable annuities.
EFFECTIVE DATE
September 1, 2009.