S.1389 is a bill that Senator Bill Nelson (D-NE) and his cosponsors Senators Saxby Chambliss (R-GA), Tom Harkin (D-IA), and Sam Brownback (R-KS) have introduced as a companion to the Meeks-Price Bill previously mentioned on this blog. This bill is backed by the Coalition for Indexed Products, according to PR Newswire via Marketwatch.com. “S.1389 seeks to clarify the exemption from certain annuity contracts and insurance policies from Federal regulation under the Securities Act of 1933.” The House and the Senate bills desire to overturn the SEC’s new rule reclassifying fixed indexed annuities as securities so the SEC can regulate them.
Since fixed indexed annuities are already being regulated by commissioners in each state, Jim Poolman of the Coalition for Indexed Products points out that this SEC rule will cause double regulation. Poolman also states that difficulties will arise for the middle class purchasers because of this duplication. There may be additional cosponsors to this bill from both sides of the aisle.
