117TH CONGRESS 

2D SESSION S. 3198 

AN ACT 

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, 
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†S 3198 ES

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Registration for Index3 Linked Annuities Act’’. 

4 SEC. 2. PARITY FOR REGISTERED INDEX-LINKED ANNU5 ITIES REGARDING REGISTRATION RULES. 

6 (a) DEFINITIONS.—In this section: 

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

8 means the Securities and Exchange Commission. 

9 (2) INVESTMENT COMPANY.—The term ‘‘invest10 ment company’’ has the meaning given the term in 

11 section 3 of the Investment Company Act of 1940 

12 (15 U.S.C. 80a–3). 

13 (3) MARKET VALUE ADJUSTMENT.—The term 

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

15 registered index-linked annuity, after an early with16 drawal or contract discontinuance— 

17 (A) an adjustment to the value of that an18 nuity based on calculations using a predeter19 mined formula; or 

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

21 factor, as determined by the Commission) that 

22 apply to that annuity. 

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

24 means a purchaser of a registered index-linked an25 nuity. 
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†S 3198 ES

1 (5) REGISTERED INDEX-LINKED ANNUITY.— 

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

3 an annuity— 

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

5 (B) that is registered with the Commission 

6 in accordance with section 5 of the Securities 

7 Act of 1933 (15 U.S.C. 77e); 

8 (C) that is issued by an insurance com9 pany that is subject to the supervision of— 

10 (i) the insurance commissioner or 

11 bank commissioner of any State; or 

12 (ii) any agency or officer performing 

13 like functions as a commissioner described 

14 in clause (i); 

15 (D) that is not issued by an investment 

16 company; and 

17 (E) the returns of which— 

18 (i) are based on the performance of a 

19 specified benchmark index or rate (or a 

20 registered exchange traded fund that seeks 

21 to track the performance of a specified 

22 benchmark index or rate); and 

23 (ii) may be subject to a market value 

24 adjustment if amounts are withdrawn be-
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†S 3198 ES

1 fore the end of the period during which 

2 that market value adjustment applies. 

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

4 meaning given the term in section 2(a) of the Secu5 rities Act of 1933 (15 U.S.C. 77b(a)). 

6 (b) RULES.— 

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

8 after the date of enactment of this Act, the Commis9 sion shall propose, and, not later than 18 months 

10 after the date of enactment of this Act, the Commis11 sion shall prepare and finalize, new or amended 

12 rules, as appropriate, to establish a new form in ac13 cordance with paragraph (2) on which an issuer of 

14 a registered index-linked annuity may register that 

15 registered index-linked annuity, subject to conditions 

16 the Commission determines appropriate, which may 

17 include requiring the issuer to take the steps de18 scribed in section 240.12h–7(e) of title 17, Code of 

19 Federal Regulations, or any successor regulation, 

20 with respect to the registered index-linked annuity. 

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

22 required to be established under paragraph (1), the 

23 Commission shall— 

24 (A) design the form to ensure that a pur25 chaser using the form receives the information 
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1 necessary to make knowledgeable decisions, tak2 ing into account— 

3 (i) the availability of information; 

4 (ii) the knowledge and sophistication 

5 of that class of purchasers; 

6 (iii) the complexity of the registered 

7 index-linked annuity; and 

8 (iv) any other factor the Commission 

9 determines appropriate; 

10 (B) engage in investor testing; and 

11 (C) incorporate the results of the testing 

12 required under subparagraph (B) in the design 

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

14 information is conveyed in terms that a pur15 chaser is able to understand. 

16 (c) TREATMENT IF RULES NOT PREPARED AND FI17 NALIZED IN A TIMELY MANNER.— 

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

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

20 Commission has failed to prepare and finalize the 

21 rules required under subsection (b)(1), any reg22 istered index-linked annuity may be registered on 

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

24 Code of Federal Regulations, or any successor regu25 lation. 
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†S 3198 ES

1 (2) PREPARATION.—A registration described in 

2 paragraph (1) shall be prepared pursuant to applica3 ble provisions of the form described in that para4 graph. 

5 (3) TERMINATION.—This subsection shall ter6 minate upon the establishment by the Commission of 

7 the form described in subsection (b). 

8 (d) RULES OF CONSTRUCTION.—Nothing in this sec9 tion may be construed to— 

10 (1) limit the authority of the Commission to— 

11 (A) determine the information to be re12 quested in the form described in subsection (b); 

13 or 

14 (B) extend the eligibility for the form de15 scribed in subsection (b) to a product that is 

16 similar to, but is not, a registered index-linked 

17 annuity; or 

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

19 order. 

Passed the Senate December 6, 2022. 

Attest: 

Secretary. 

117TH CONGRESS 

2D SESSION S. 3198 

AN ACT 

To direct the Securities and Exchange Commission 

ities, and for other purposes. lored specifically to registered index-linked annuindex-linked annuities to register on a form taito revise any rules necessary to enable issuers of