II 

117TH CONGRESS 

1ST SESSION S. 3198 

To direct the Securities and Exchange Commission to revise any rules necessary to enable issuers of index-linked annuities to register on a form 

tailored specifically to registered index-linked annuities, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 4, 2021 

Ms. SMITH (for herself and Mr. TILLIS) introduced the following bill; which 

was read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To direct the Securities and Exchange Commission to revise 

any rules necessary to enable issuers of index-linked annuities to register on a form tailored specifically to registered index-linked annuities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Registration for Index5 Linked Annuities Act’’. 


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1 SEC. 2. PARITY FOR REGISTERED INDEX-LINKED ANNU2 ITIES REGARDING REGISTRATION RULES. 

3 (a) DEFINITIONS.—In this section: 

4 (1) COMMISSION.—The term ‘‘Commission’’ 

5 means the Securities and Exchange Commission. 

6 (2) INVESTMENT COMPANY.—The term ‘‘invest7 ment company’’ has the meaning given the term in 

8 section 3 of the Investment Company Act of 1940 

9 (15 U.S.C. 80a–3). 

10 (3) MARKET VALUE ADJUSTMENT.—The term 

11 ‘‘market value adjustment’’ means, with respect to a 

12 registered index-linked annuity— 

13 (A) an adjustment to the value of that an14 nuity based on calculations using a predeter15 mined formula; or 

16 (B) a change in interest rates (or other 

17 factor, as determined by the Commission) that 

18 applies to that annuity after an early with19 drawal or contract discontinuance. 

20 (4) PURCHASER.—The term ‘‘purchaser’’ 

21 means a purchaser of a registered index-linked an22 nuity. 

23 (5) REGISTERED INDEX-LINKED ANNUITY.— 

24 The term ‘‘registered index-linked annuity’’ means 

25 an annuity— 

26 (A) that is deemed to be a security; 


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1 (B) that is required to be registered with 

2 the Commission; 

3 (C) that is issued by an insurance com4 pany that is subject to the supervision of the in5 surance commissioner of the applicable State; 

6 (D) that is not issued by an investment 

7 company; and 

8 (E) the returns of which— 

9 (i) are based on the performance of a 

10 specified benchmark index or rate; and 

11 (ii) may be subject to a market value 

12 adjustment if amounts are withdrawn be13 fore the end of the period during which 

14 that market value adjustment applies. 

15 (6) SECURITY.—The term ‘‘security’’ has the 

16 meaning given the term in section 2(a) of the Secu17 rities Act of 1933 (15 U.S.C. 77b(a)). 

18 (b) RULES.— 

19 (1) IN GENERAL.—Not later than 180 days 

20 after the date of enactment of this Act, the Commis21 sion shall propose, and, not later than 18 months 

22 after the date of enactment of this Act, the Commis23 sion shall prepare and finalize, new or amended 

24 rules, as appropriate, to establish a new form in ac25 cordance with paragraph (2) on which an issuer of 


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1 a registered index-linked annuity may register that 

2 registered index-linked annuity, subject to conditions 

3 the Commission determines appropriate. 

4 (2) DESIGN OF FORM.—In developing the form 

5 to be established under paragraph (1), the Commis6 sion shall— 

7 (A) design the form to ensure that a pur8 chaser using the form receives the information 

9 necessary to make knowledgeable decisions, tak10 ing into account— 

11 (i) the availability of information; 

12 (ii) the knowledge and sophistication 

13 of that class of purchasers; 

14 (iii) the complexity of the registered 

15 index-linked annuity; and 

16 (iv) any other factor the Commission 

17 determines appropriate; 

18 (B) engage in investor testing; and 

19 (C) incorporate the results of the testing 

20 required under subparagraph (B) in the design 

21 of the form, with the goal of ensuring that key 

22 information is conveyed in terms that a pur23 chaser is able to understand. 

24 (c) TREATMENT IF RULES NOT PREPARED AND FI25 NALIZED IN A TIMELY MANNER.— 


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1 (1) IN GENERAL.—If, as of the date that is 18 

2 months after the date of enactment of this Act, the 

3 Commission has failed to prepare and finalize the 

4 rules required under subsection (b)(1), any reg5 istered index-linked annuity may be registered on 

6 the form described in section 239.17b of title 17, 

7 Code of Federal Regulations, or any successor regu8 lation. 

9 (2) PREPARATION.—A registration described in 

10 paragraph (1) shall be prepared pursuant to applica11 ble provisions of the form described in that para12 graph. 

13 (d) RULES OF CONSTRUCTION.—Nothing in this sec14 tion may be construed to— 

15 (1) limit the authority of the Commission to de16 termine the information to be requested in the form 

17 described in subsection (b); or 

18 (2) preempt any State law, regulation, rule, or 

19 order. 

Æ 


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