Registration for Index-Linked Annuities Act

#6994 | HR Congress #116

Last Action: Referred to the House Committee on Financial Services. (5/22/2020)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6994 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6994

 To direct the Securities and Exchange Commission to revise any rules 
   necessary to enable issuers of index-linked annuities to use the 
   securities offering forms that are available to other issuers of 
                              securities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2020

  Mr. Phillips (for himself and Mr. Stivers) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To direct the Securities and Exchange Commission to revise any rules 
   necessary to enable issuers of index-linked annuities to use the 
   securities offering forms that are available to other issuers of 
                              securities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Registration for Index-Linked 
Annuities Act''.

SEC. 2. PARITY FOR REGISTERED INDEX LINKED ANNUITIES REGARDING 
              REGISTRATION RULES.

    (a) Definition.--In this section, the term ``registered index 
linked annuity'' means an annuity that--
            (1) is deemed a security;
            (2) is required to be registered with the Securities and 
        Exchange Commission;
            (3) that is issued by an insurance company that is subject 
        to the supervision of the insurance commissioner of the 
        applicable State;
            (4) is not issued by an investment company; and
            (5) the returns of which--
                    (A) are based on the performance of a specified 
                index rate or other financial tracking vehicle;
                    (B) are subject to a modification of positive and 
                negative returns by a financial calculation mechanism; 
                and
                    (C) may be subject to a market value adjustment if 
                amounts are withdrawn prior to the end of the period 
                during which such adjustment applies.
    (b) Revision to Rules.--Not later than the end of the 180-day 
period beginning on the date of enactment of this Act, the Securities 
and Exchange Commission shall propose and, not later than 1 year after 
the date of enactment of this Act, the Commission shall prepare and 
finalize any new or amended rules, as appropriate, to establish a new 
form on which an issuer of a registered index linked annuity may 
register such registered index linked annuity, subject to conditions 
the Commission determines appropriate. Any action that the Securities 
and Exchange Commission takes pursuant to this subsection shall 
consider the availability of information to investors.
    (c) Treatment if Revisions Not Completed in a Timely Manner.--If 
the Securities and Exchange Commission fails to complete the revisions 
required by subsection (b) by the time required by such subsection, any 
registered index linked annuity may be registered on the form described 
in section 239.17b of title 17, Code of Federal Regulations. Such 
registration shall be prepared pursuant to applicable provisions of the 
form.
    (d) Rule of Construction.--Nothing in this Act shall be construed 
to limit the authority of the Securities and Exchange Commission to 
determine the information to be requested in the form described in 
subsection (b).
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