ING is introducing two new fixed index annuities that are registered as securities products with the U.S. Securities and Exchange Commission.
American Equity is expected to launch a registered FIA soon. These products are designed for distribution through broker-dealer channels. Actions like these are a consequence of the uncertainty surrounding the SEC’s Rule 151A. AMS, along with various insurance carriers, continues to battle with the SEC in connection with its adoption of Rule 151A, which expands the SEC's jurisdiction to regulate index annuities and requires securities licensing, in addition to insurance licensing, for producers. The future of Rule 151A is uncertain as efforts to overturn the rule through judicial and/or legislative means continue. In the meantime, actions like these are to be expected and may give some producers additional reasons to consider securities licensing. However, since we believe that the current distribution channels are the best way for producers to proceed, we don’t expect to be promoting these B/D channel products. That said, as I have noted before, producers who sell FIAs and who do not have a securities license should consider obtaining one irrespective of what happens with Rule 151A in order to avoid compliance problems relating to the source of funds when clients liquidate securities positions to make an FIA purchase.