Alert October 19, 2010

SEC Formally Withdraws Rule on Indexed Annuity Contract

The SEC issued a release formally withdrawing Rule 151A under the Securities Act of 1933.  That rule, which was designed to require registration of certain indexed annuity contracts, was vacated by the U.S. Court of Appeals for the District of Columbia circuit.  See the July 13, 2010 Alert.  The SEC stated that its action to withdraw the rule is ministerial in nature in light of the court decision.  The SEC did not withdraw Rule 12h‑7 under the Securities Exchange Act of 1934, which was adopted at the same time as Rule 151A but was not subject to court challenge.  (Rule 12h-7 was discussed in the January 13, 2009 Alert.)