A June 15 release published by the SEC has requested public comment relevant to, primarily, the circumstances under which any of the following types of “information providers” should be deemed “investment advisers” for...more
The SEC has proposed to require that mutual funds — including funds supporting variable insurance products — provide “consistent, comparable, and reliable” disclosure that is meaningful to investors about the role of...more
On January 26, 2022, the SEC proposed amendments to Form PF including:
• Requiring investment advisers to private equity funds and large investment advisers to certain hedge funds to provide current reporting of certain...more
Rule changes recently proposed by the SEC would shorten the time within which most securities transactions effected by a broker-dealer must be settled. Specifically, most settlements would be required to occur by the first...more
It’s planting season for the SEC, and among the seedlings is File Number S7-04-22, a proposed cybersecurity rule intended to increase regulation of advisers’ and investment companies’ cybersecurity preparedness. As currently...more
SEC Chair Gary Gensler closed out 2021 with remarks at a recent Institutional Limited Partners Association Summit, focusing on a number of issues facing private equity and hedge funds....more
SEC rule changes effective in March of this year have replaced the patchwork of guidance and rules developed over many decades to determine when securities offerings should be “integrated” with one another when deciding...more
At least two insurance companies are adding “buffered” investment portfolios to the lineup of underlying funds that are available to support their variable annuity and variable life insurance policies....more
About 20 years ago, the SEC began scrutinizing variable product fund “substitution” applications in ways that increased both the time required to obtain SEC approval and the conditions necessary to obtain such approval. The...more
SEC Divided on Securities Law Exemptions -
SEC Commissioner Hester Peirce in October published an explanation of her dissent from an SEC enforcement action concerning certain collective investment vehicles established by a...more
SEC Replaces Rather than Revises -
In late October, the SEC approved a wholesale replacement for the patchwork of interpretive and no-action positions it had developed over more than 40 years to regulate fund use of...more
Implementing all the reforms adopted by the SEC in connection with its variable insurance product summary prospectus rule (Rule 498A) is potentially a major undertaking, depending on the number and nature of an insurer’s...more
Legislation proposed as part of Gov. Andrew Cuomo’s executive budget for 2021 would substantially expand the enforcement powers of the superintendent of the New York State Department of Financial Services, as well as the...more
As spring begins, and after many years of fertilizing and watering by industry representatives, the SEC has adopted comprehensive reforms to its disclosure requirements for variable annuities (VAs) and variable life insurance...more
Insurance and Investment Firms Breathe Easier -
On December 4, 2019, the Financial Stability Oversight Council adopted final interpretive guidance on addressing systemic threats to the financial system that prioritizes the...more
2/12/2020
/ Consumer Insurance Products ,
Dodd-Frank ,
Federal Reserve ,
Financial Institutions ,
Financial Services Industry ,
FSOC ,
Interpretive Rule ,
Life Insurance ,
Mutual Funds ,
Mutual Insurance Companies ,
Regulatory Burden ,
SIFIs ,
Too Big to Fail
A risk alert issued on November 7, 2019, by the SEC’s Office of Compliance Inspections and Examinations underscores a continuing dilemma faced by SEC-regulated entities....more
2/10/2020
/ Broker-Dealer ,
Cooperative Compliance Regime ,
Corporate Governance ,
Insurance Investment Products ,
Investment Adviser ,
Life Insurance ,
OCIE ,
Policies and Procedures ,
Risk Alert ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
The Supreme Court’s June decision in Food Marketing Institute v. Argus Leader Media has made it easier for federal entities to resist certain Freedom of Information Act requests for confidential business information that the...more
An April 11, 2019, Office of Management and Budget Memorandum seeks to bring certain guidance issued by federal agencies, including the SEC, under more effective scrutiny. By its terms, the Memorandum applies to agency rules,...more
On June 5, 2019, the SEC adopted a four-part regulatory package that includes: new Regulation Best Interest (Reg. BI), the related “Relationship Summary” disclosure form (Form CRS), and two interpretations of the Advisers...more
7/12/2019
/ Best Interest Standard ,
Broker-Dealer ,
Consumer Insurance Products ,
Disclosure Requirements ,
Duty of Care ,
Duty of Loyalty ,
Fiduciary Duty ,
Form CRS ,
Investment Adviser ,
Investment Management ,
Life Insurance ,
New Rules ,
Regulation Best Interest ,
Regulation BI ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Transactions ,
Standard of Conduct
In Release No. 33-10618 (Mar. 20, 2019), the SEC adopted amendments (the “Amendments”) that consolidate, conform, and otherwise refine numerous requirements applicable to filings with the agency. ...more
4/9/2019
/ Consumer Insurance Products ,
Filing Requirements ,
Financial Regulatory Reform ,
Life Insurance ,
Mutual Funds ,
New Amendments ,
Regulatory Oversight ,
Regulatory Requirements ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Variable Annuities
As index universal life (IUL) and index annuity product innovation sprints ahead, regulators, running to catch up, are considering whether changes are needed to the NAIC’s Actuarial Guideline 49 and to its Annuity Disclosure...more
The increasingly widespread use and acceptance of various types of online communications have made it more attractive — for both firms and clients — to conduct business online, while at the same time making it more doubtful...more
4/5/2019
/ Consumer Insurance Products ,
Electronic Communications ,
Investment Adviser ,
Investment Management ,
Mobile Apps ,
OCIE ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Telecommunications ,
Text Messages
Like most ETFs, the buffer ETFs are registered with the SEC on Form N-1A as “open-end” investment companies, and they issue and redeem their shares at net asset value (NAV) only as part of large blocks, known as “creation...more
Rule amendments proposed in October by the SEC could impact insurers whose obligations under certain types of annuity contracts have been guaranteed by the insurers’ affiliates....more
FINRA’s reported enforcement actions as to certain variable annuity practices increased in 2018. For example, FINRA announced more than half a dozen settlements – via Letters of Acceptance, Waiver and Consent (AWCs) – for...more