[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3198 Engrossed in Senate (ES)]
<DOC>
117th CONGRESS
2d Session
S. 3198
_______________________________________________________________________
AN 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.
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) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(2) 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).
(3) Market value adjustment.--The term ``market value
adjustment'' means, with respect to a registered index-linked
annuity, after an early withdrawal or contract discontinuance--
(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 apply to that
annuity.
(4) Purchaser.--The term ``purchaser'' means a purchaser of
a registered index-linked annuity.
(5) Registered index-linked annuity.--The term ``registered
index-linked annuity'' means an annuity--
(A) that is deemed to be a security;
(B) that is registered with the Commission in
accordance with section 5 of the Securities Act of 1933
(15 U.S.C. 77e);
(C) that is issued by an insurance company that is
subject to the supervision of--
(i) the insurance commissioner or bank
commissioner of any State; or
(ii) any agency or officer performing like
functions as a commissioner described in clause
(i);
(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 (or a
registered exchange traded fund that seeks to
track 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adjustment if amounts are withdrawn before the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'' has the meaning given
the term in section 2(a) of the Securities Act of 1933 (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, which may include requiring the issuer to take the
steps described in section 240.12h-7(e) of title 17, Code of
Federal Regulations, or any successor regulation, with respect
to the registered index-linked annuity.
(2) Design of form.--In developing the form required 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.
(3) Termination.--This subsection shall terminate upon the
establishment by the Commission of the form described in
subsection (b).
(d) Rules of Construction.--Nothing in this section may be
construed to--
(1) limit the authority of the Commission to--
(A) determine the information to be requested in
the form described in subsection (b); or
(B) extend the eligibility for the form described
in subsection (b) to a product that is similar to, but
is not, a registered index-linked annuity; or
(2) preempt any State law, regulation, rule, or order.
Passed the Senate December 6, 2022.
Attest:
Secretary.
117th CONGRESS
2d Session
S. 3198
_______________________________________________________________________
AN 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.