Registration for Index Linked Annuities Act of 2020

Bill: 116-s-3795
Sponsor: full_name: Sen. Smith, Tina [D-MN]
Introduced: 2020-05-21
Policy area: Finance and Financial Sector
Latest action: action_date: 2020-05-21
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2020-05-21
action_desc: Introduced in Senate
text: <p><b>Registration for Index-Linked Annuities Act of 2020</b></p> <p>This bill requires the Securities and Exchange Commission (SEC) to create a new form for the registration of index linked annuities.</p> <p>The bill defines a registered index linked annuity as an annuity that is deemed a security, that must be 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 index rate or other financial tracking vehicle, (2) are subject to modification by a financial calculation mechanism, and (3) may be subject to a market value adjustment if amounts are withdrawn early. </p>

tv_txt: II 116th CONGRESS 2d Session S. 3795 IN THE SENATE OF THE UNITED STATES May 21, 2020 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 use the securities offering forms that are available to other issuers of securities

1. Short title This Act may be cited as the Registration for Index Linked Annuities Act of 2020 . 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returns by a financial calculation mechanism; and (C) may be subject to a market value adjustment if amounts are withdrawn prior to the end of the period during which such adjustment applies.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).