SEC Wants Life Settlements Regulated As Securities

Law360, New York (July 22, 2010, 2:13 PM EDT) -- The U.S. Securities and Exchange Commission said Thursday that life settlements should be regulated as securities in order to protect investors from fraud and market abuse.

The report was submitted by an SEC task force requested by Senate Special Committee on Aging chairman Herb Kohl, D-Wis. A committee investigation of life settlements, released in April 2009, found instances of fraud, sales and marketing abuses, and high commissions charged by settlement brokers.

The life settlement market has grown significantly in the past decade and recently came under...
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