Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article VI - Separate Accounts › Section 14VAC5-80-290 - Investment advisory services to a separate account

Current through Register Vol. 40, No. 24, July 15, 2024
An insurer shall not enter into a contract under which any
					 person undertakes, for a fee, to regularly furnish investment advice to such
					 insurer with respect to its separate accounts maintained for variable life
					 insurance policies unless:
1. The
				  person providing such advice is registered as an investment advisor under the
				  Investment Advisers Act of 1940 ( 15 USC § 80a-1 et seq.); or
2. The person providing such advice is an
				  investment manager under the Employee Retirement Income Security Act of 1974 (
				  29 USC § 1001 et seq.) with respect to the assets of each employee benefit
				  plan allocated to the separate account; or
3. The insurer has filed with the Commission
				  and continues to file annually the following information and statements
				  concerning the proposed advisor;
a. The name
				  and form of organization, state of organization, and its principal place of
				  business;
b. The names and
				  addresses of its partners, officers, directors, and persons performing similar
				  functions, or if such an investment advisor be an individual, of such
				  individual;
c. A written Standard
				  of Conduct complying in substance with the requirements of
				  14VAC5-80-270 of this Article
				  which has been adopted by the investment advisor and is applicable to the
				  investment advisor, its officers, directors, and affiliates;
d. A statement provided by the proposed
				  advisor as to whether the advisor or any person associated therewith;
(1) Has been convicted within 10 years of any
				  felony or misdemeanor arising out of such person's conduct as an employee,
				  salesman, officer or director or an insurance company, a banker, an insurance
				  agent, a securities broker, or an investment advisor involving embezzlement,
				  fraudulent conversion, or misappropriation of funds or securities, or involving
				  the violation of Sections 1341, 1342, or 1343 of Title 18 of United States
				  Code;
(2) Has been permanently or
				  temporarily enjoined by order, judgment, or decree of any court of competent
				  jurisdiction from acting as an investment advisor, underwriter, broker, or
				  dealer, or as an affiliated person or as an employee of any investment company,
				  bank, or insurance company, or from engaging in or continuing any conduct or
				  practice in connection with any such activity;
(3) has been found by federal or state
				  regulatory authorities to have willfully violated or have acknowledged willful
				  violation of any provision of federal or state securities laws or state
				  insurance laws or of any rule or regulation under any such laws; or
(4) has been censured, denied an investment
				  advisor registration, had a registration as an investment advisor revoked or
				  suspended, or has been barred or suspended from being associated with an
				  investment advisor by order of federal or state regulatory authorities;
				  and
e. Such investment
				  advisory contract shall be in writing and provide that it may be terminated by
				  the insurer without penalty to the insurer or the separate account upon no more
				  than 60 days' written notice to the investment advisor.
The Commission may, after notice and opportunity for
					 hearing, by order require such investment advisory contract to be terminated if
					 it deems continued operation thereunder to be hazardous to the public or the
					 insurer's policyholders.