Registration for Index-Linked Annuities 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. Short title This Act may be cited as the Registration for Index-Linked Annuities Act 2. Parity for registered index-linked annuities regarding registration rules (a) Definitions In this section: (1) Commission The term Commission (2) Investment company The term investment company 15 U.S.C. 80a–3 (3) Market value adjustment The term market value adjustment (A) an adjustment to the value of that annuity based on calculations using a predetermined formula; or (B) a change in interest rates (or other factor, as determined by the Commission) that applies to that annuity after an early withdrawal or contract discontinuance. (4) Purchaser The term purchaser (5) Registered index-linked annuity The term registered index-linked annuity (A) that is deemed to be a security; (B) that is required to be registered with the Commission; (C) that is issued by an insurance company that is subject to the supervision of the insurance commissioner of the applicable State; (D) that is not issued by an investment company; and (E) the returns of which— (i) are based on the performance of a specified benchmark index or rate; and (ii) may be subject to a market value adjustment if amounts are withdrawn before the end of the period during which that market value adjustment applies. (6) Security The term security 15 U.S.C. 77b(a) (b) Rules (1) In general Not later than 180 days after the date of enactment of this Act, the Commission shall propose, and, not later than 18 months after the date of enactment of this Act, the Commission shall prepare and finalize, new or amended rules, as appropriate, to establish a new form in accordance with paragraph (2) on which an issuer of a registered index-linked annuity may register that registered index-linked annuity, subject to conditions the Commission determines appropriate. (2) Design of form In developing the form to be established under paragraph (1), the Commission shall— (A) design the form to ensure that a purchaser using the form receives the information necessary to make knowledgeable decisions, taking into account— (i) the availability of information; (ii) the knowledge and sophistication of that class of purchasers; (iii) the complexity of the registered index-linked annuity; and (iv) any other factor the Commission determines appropriate; (B) engage in investor testing; and (C) incorporate the results of the testing required under subparagraph (B) in the design of the form, with the goal of ensuring that key information is conveyed in terms that a purchaser is able to understand. (c) Treatment if rules not prepared and finalized in a timely manner (1) In general If, as of the date that is 18 months after the date of enactment of this Act, the Commission has failed to prepare and finalize the rules required under subsection (b)(1), any registered index-linked annuity may be registered on the form described in section 239.17b of title 17, Code of Federal Regulations, or any successor regulation. (2) Preparation A registration described in paragraph (1) shall be prepared pursuant to applicable provisions of the form described in that paragraph. (d) Rules of construction Nothing in this section may be construed to— (1) limit the authority of the Commission to determine the information to be requested in the form described in subsection (b); or (2) preempt any State law, regulation, rule, or order.

Summary: Registration for Index-Linked Annuities Act This bill requires the Securities and Exchange Commission (SEC) to create a new form for the registration of index-linked annuities to ensure that a purchaser can make a knowledgeable decision. The bill defines a registered index-linked annuity as an annuity that is deemed a security, that is registered with the SEC, and that is issued by an insurance company subject to state supervision. Furthermore, the returns of these annuities (1) are based on the performance of a specified benchmark index or rate, and (2) may be subject to a market value adjustment if amounts are withdrawn early.