[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4865 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4865
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.
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IN THE HOUSE OF REPRESENTATIVES
July 30, 2021
Ms. Adams (for herself, Mr. Phillips, and Mr. Gonzalez of Ohio)
introduced the following bill; which was referred to the Committee on
Financial Services
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A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Registration for Index-Linked
Annuities Act''.
SEC. 2. PARITY FOR REGISTERED INDEX-LINKED ANNUITIES REGARDING
REGISTRATION RULES.
(a) Definitions.--In this section:
(1) Investment company.--The term ``investment company''
has the meaning given the term in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3).
(2) Market value adjustment.--The term ``market value
adjustment'' means, with respect to a registered index-linked
annuity--
(A) an adjustment to the value of such annuity
based on calculations using a predetermined formula; or
(B) a change in interest rates (or other factor, as
determined by the Securities and Exchange Commission)
that applies to such annuity following an early
withdrawal or contract discontinuance.
(3) Purchaser.--The term ``purchaser'' means a purchaser of
a registered index-linked annuity.
(4) Registered index-linked annuity.--The term ``registered
index-linked annuity'' means an annuity that--
(A) is deemed a security;
(B) is required to be registered with the
Securities and Exchange Commission;
(C) is issued by an insurance company that is
subject to the supervision of the insurance
commissioner of the applicable State;
(D) 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adjustment if amounts are withdrawn prior to
the end of the period during which such
adjustment applies.
(5) Security.--The term ``security'' has the meaning given
the term in section 2(a) of the Securities Act of 1933 (15
U.S.C. 77b(a)).
(b) Revision to Rules.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Securities and Exchange
Commission shall propose and, not later than 18 months 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 in accordance with paragraph (2) on which
an issuer of a registered index-linked annuity may register
such 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 Securities and Exchange
Commission shall--
(A) design such form to ensure that purchaser using
such form receive the information necessary to make
knowledgeable decisions, taking into account--
(i) the availability of information;
(ii) the knowledge and sophistication of
such purchasers;
(iii) the complexity of the registered
index-linked annuity; and
(iv) any other factors the Commission
determines appropriate; and
(B) engage in investor testing and incorporate the
results of such testing 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 Revisions Not Completed in a Timely Manner.--If
the Securities and Exchange Commission fails to complete the revisions
required by subsection (b)(1) 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--
(1) limit the authority of the Securities and Exchange
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.
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