(B) to develop educational materials and 
training aimed at reducing misleading and 
fraudulent marketing of financial products to-
ward seniors; and 
(2) may establish such performance objectives, 
reporting requirements, and application procedures 
for States and State agencies receiving grants under 
this Act as the Attorney General determines are nec-
essary to carry out and assess the effectiveness of 
the program under this Act. 
(b) USE OF GRANT AMOUNTS.—A grant under this 
Act may be used (including through subgrants) by the 
State or the appropriate State agency designated by the 
State— 
(1) to fund additional staff to identify, inves-
tigate, and prosecute (through civil, administrative, 
or criminal enforcement actions) cases involving mis-
leading or fraudulent marketing of financial prod-
ucts to seniors; 
(2) to fund technology, equipment, and training 
for regulators, prosecutors, and law enforcement in 
order to identify salespersons and advisers who tar-
get seniors through the use of misleading designa-
tions; 
VerDate Nov 24 2008 
22:11 Sep 10, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3551.IH
H3551
jlentini on DSKJ8SOYB1PROD with BILLS
(3) to fund technology, equipment, and training 
for prosecutors to increase the successful prosecution 
of those targeting seniors with the use of misleading 
designations; 
(4) to provide educational materials and train-
ing to regulators on the appropriateness of the use 
of designations by salespersons and advisers of fi-
nancial products; 
(5) to provide educational materials and train-
ing to seniors to increase their awareness and under-
standing of designations; 
(6) to develop comprehensive plans to combat 
misleading or fraudulent marketing of financial 
products to seniors; and 
(7) to enhance provisions of State law that 
could offer additional protection for seniors against 
misleading or fraudulent marketing of financial 
products. 
(c) GRANT REQUIREMENTS.— 
(1) MAXIMUM.—The amount of a grant under 
this Act may not exceed $500,000 per fiscal year per 
State, if all requirements of paragraphs (2), (3), (4), 
and (5) are met. Such amount shall be limited to 
$100,000 per fiscal year per State in any case in 
which the State meets the requirements of— 
VerDate Nov 24 2008 
22:11 Sep 10, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3551.IH
H3551
jlentini on DSKJ8SOYB1PROD with BILLS
(A) paragraphs (2) and (3), but not each 
of paragraphs (4) and (5); or 
(B) paragraphs (4) and (5), but not each 
of paragraphs (2) and (3). 
(2) STANDARD DESIGNATION RULES FOR SECU-
RITIES.—A State shall have adopted rules on the ap-
propriate use of designations in the offer or sale of 
securities or investment advice, which shall meet or 
exceed the minimum requirements of the NASAA 
Model Rule on the Use of Senior-Specific Certifi-
cations and Professional Designations, as in effect 
on the date of enactment of this Act, or any suc-
cessor thereto, as determined by the Attorney Gen-
eral. 
(3) SUITABILITY RULES FOR SECURITIES.—A 
State shall have adopted standard rules on the suit-
ability requirements in the sale of securities, which 
shall, to the extent practicable, conform to the min-
imum requirements on suitability imposed by self- 
regulatory organization rules under the securities 
laws (as defined in section 3 of the Securities Ex-
change Act of 1934), as determined by the Attorney 
General. 
(4) STANDARD DESIGNATION RULES FOR IN-
SURANCE PRODUCTS.—A State shall have adopted 
VerDate Nov 24 2008 
22:11 Sep 10, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3551.IH
H3551
jlentini on DSKJ8SOYB1PROD with BILLS
standard rules on the appropriate use of designa-
tions in the sale of insurance products, which shall, 
to the extent practicable, conform to the minimum 
requirements of the National Association of Insur-
ance Commissioners Model Regulation on the Use of 
Senior-Specific Certifications and Professional Des-
ignations in the Sale of Life Insurance and Annu-
ities, as in effect on the date of enactment of this 
Act, or any successor thereto, as determined by the 
Attorney General. 
(5) SUITABILITY AND SUPERVISION RULES FOR 
ANNUITY PRODUCTS.— 
(A) IN
GENERAL.—A State shall have 
adopted rules governing insurer supervision of, 
suitability of, and insurer and insurance pro-
ducer conduct relating to, the sale of annuity 
products, including fixed and index annuities. 
(B) ANNUITY PRODUCTS CRITERIA.—The 
rules required by subparagraph (A) shall, to the 
extent practicable (as determined by the Attor-
ney General), provide— 
(i) that insurers, and insurance pro-
ducers are responsible for, and liable for 
penalties for, the suitability of each rec-
ommended annuity transaction; 
VerDate Nov 24 2008 
22:11 Sep 10, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3551.IH
H3551
jlentini on DSKJ8SOYB1PROD with BILLS
(ii) that insurers and insurance pro-
ducers are required to apply a standard for 
determining the suitability of each rec-
ommended annuity transaction, including 
fixed and index annuities, that is at least 
as protective of the interests of the con-
sumer as rule 2821(b) of the Financial In-
dustry Regulatory Authority (in this para-
graph referred to as ‘‘FINRA’’), as in ef-
fect on the date of enactment of this Act, 
or any successor to such rule; 
(iii) that insurers and insurance pro-
ducers are required to maintain a process 
for review of the suitability, and approval 
or disapproval, of each recommended annu-
ity transaction that is at least as protective 
of the interests of the consumer as the 
principal 
review 
required 
under 
rule 
2821(c) of FINRA, as in effect on the date 
of enactment of this Act, or any successor 
to such rule; 
(iv) that insurers and insurance pro-
ducers are required to maintain processes 
for the supervision of direct annuity sales 
and insurance producer-recommended an-
VerDate Nov 24 2008 
22:11 Sep 10, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3551.IH
H3551
jlentini on DSKJ8SOYB1PROD with BILLS
nuity sales (including procedures for the 
insurer to obtain and confirm consumer 
suitability information and for the insurer 
to confirm consumer understanding of the 
annuity transaction) that are at least as 
protective of the interests of the consumer 
as member broker and dealer supervision 
requirements of FINRA, as in effect on 
the date of enactment of this Act, or any 
successor to such requirements; 
(v) that insurers are required to verify 
that each insurance producer successfully 
completes, and each insurance producer is 
required to receive, training designed to 
ensure that the insurance producer is com-
petent to recommend each class of annuity; 
(vi) that insurers are required to 
verify that insurance producers receive, 
and insurance producers are required to 
receive, training regarding the features of 
each offered annuity product, to an extent 
that is at least as protective of the inter-
ests of the consumer as the FINRA firm 
element training requirements, as in effect 
VerDate Nov 24 2008 
22:11 Sep 10, 2009
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3551.IH
H3551
jlentini on DSKJ8SOYB1PROD with BILLS