SEC Defends FIA Rule Against Insurers' Challenge

Law360, New York (April 7, 2009, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has defended in a federal appeals court its controversial proposed rule that would classify fixed index annuities as securities, arguing that the Securities Act of 1933 gives it the authority to regulate FIAs.

In a brief filed Monday in the U.S. Court of Appeals for the District of Columbia Circuit, the SEC said that FIAs are not covered by Section 3(a)(8) of the Securities Act, which exempts annuity contracts from regulation by the SEC. It said that the court should...
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