Implementing all the reforms adopted by the SEC in connection with its variable insurance product summary prospectus rule (Rule 498A) is potentially a major undertaking, depending on the number and nature of an insurer’s...more
Legislation proposed as part of Gov. Andrew Cuomo’s executive budget for 2021 would substantially expand the enforcement powers of the superintendent of the New York State Department of Financial Services, as well as the...more
As spring begins, and after many years of fertilizing and watering by industry representatives, the SEC has adopted comprehensive reforms to its disclosure requirements for variable annuities (VAs) and variable life insurance...more
Insurance and Investment Firms Breathe Easier -
On December 4, 2019, the Financial Stability Oversight Council adopted final interpretive guidance on addressing systemic threats to the financial system that prioritizes the...more
2/12/2020
/ Consumer Insurance Products ,
Dodd-Frank ,
Federal Reserve ,
Financial Institutions ,
Financial Services Industry ,
FSOC ,
Interpretive Rule ,
Life Insurance ,
Mutual Funds ,
Mutual Insurance Companies ,
Regulatory Burden ,
SIFIs ,
Too Big to Fail
A risk alert issued on November 7, 2019, by the SEC’s Office of Compliance Inspections and Examinations underscores a continuing dilemma faced by SEC-regulated entities....more
2/10/2020
/ Broker-Dealer ,
Cooperative Compliance Regime ,
Corporate Governance ,
Insurance Investment Products ,
Investment Adviser ,
Life Insurance ,
OCIE ,
Policies and Procedures ,
Risk Alert ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
The Supreme Court’s June decision in Food Marketing Institute v. Argus Leader Media has made it easier for federal entities to resist certain Freedom of Information Act requests for confidential business information that the...more
An April 11, 2019, Office of Management and Budget Memorandum seeks to bring certain guidance issued by federal agencies, including the SEC, under more effective scrutiny. By its terms, the Memorandum applies to agency rules,...more
On June 5, 2019, the SEC adopted a four-part regulatory package that includes: new Regulation Best Interest (Reg. BI), the related “Relationship Summary” disclosure form (Form CRS), and two interpretations of the Advisers...more
7/12/2019
/ Best Interest Standard ,
Broker-Dealer ,
Consumer Insurance Products ,
Disclosure Requirements ,
Duty of Care ,
Duty of Loyalty ,
Fiduciary Duty ,
Form CRS ,
Investment Adviser ,
Investment Management ,
Life Insurance ,
New Rules ,
Regulation Best Interest ,
Regulation BI ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Transactions ,
Standard of Conduct
In Release No. 33-10618 (Mar. 20, 2019), the SEC adopted amendments (the “Amendments”) that consolidate, conform, and otherwise refine numerous requirements applicable to filings with the agency. ...more
4/9/2019
/ Consumer Insurance Products ,
Filing Requirements ,
Financial Regulatory Reform ,
Life Insurance ,
Mutual Funds ,
New Amendments ,
Regulatory Oversight ,
Regulatory Requirements ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Variable Annuities
As index universal life (IUL) and index annuity product innovation sprints ahead, regulators, running to catch up, are considering whether changes are needed to the NAIC’s Actuarial Guideline 49 and to its Annuity Disclosure...more
The increasingly widespread use and acceptance of various types of online communications have made it more attractive — for both firms and clients — to conduct business online, while at the same time making it more doubtful...more
4/5/2019
/ Consumer Insurance Products ,
Electronic Communications ,
Investment Adviser ,
Investment Management ,
Mobile Apps ,
OCIE ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Telecommunications ,
Text Messages
Like most ETFs, the buffer ETFs are registered with the SEC on Form N-1A as “open-end” investment companies, and they issue and redeem their shares at net asset value (NAV) only as part of large blocks, known as “creation...more
Rule amendments proposed in October by the SEC could impact insurers whose obligations under certain types of annuity contracts have been guaranteed by the insurers’ affiliates....more
FINRA’s reported enforcement actions as to certain variable annuity practices increased in 2018. For example, FINRA announced more than half a dozen settlements – via Letters of Acceptance, Waiver and Consent (AWCs) – for...more
Marketing Private Life Insurance Separate Accounts to Smaller Banks -
Subject to certain exceptions, the so-called “Volcker rule” provisions of the Dodd-Frank Act and regulations thereunder (collectively, the Volcker Rule)...more
10/4/2018
/ BOLI ,
Covered Funds ,
Dodd-Frank ,
Federal Reserve ,
Financial Institutions ,
Financial Regulatory Reform ,
Insurance Industry ,
Insurance Investment Products ,
Investment ,
Life Insurance ,
Regulatory Oversight ,
Regulatory Standards ,
SIFIs ,
Threshold Requirements ,
Volcker Rule
New York Pushes Mutual Fund Active Share Disclosure -
New York’s Attorney General issued a report on its recent investigation of fees charged by actively managed equity mutual funds and a metric known as “Active Share.”...more
7/23/2018
/ Administrative Law Judge (ALJ) ,
Administrative Proceedings ,
Annuities ,
Broker-Dealer ,
Churning ,
Class Action ,
COI Rates ,
Constitutional Challenges ,
Data Security ,
Filing Requirements ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Insurance Investment Products ,
Investment Companies ,
Life Insurance ,
Lucia v SEC ,
MassMutual ,
Mutual Funds ,
NAIC ,
Policy Terms ,
Preemption ,
Regulatory Oversight ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
SLUSA ,
Unclaimed Property
On April 18, the SEC voted to propose major rule changes to reconcile and clarify the standards of conduct that apply to broker-dealers and investment advisers. ...more
7/5/2018
/ Best Interest Standard ,
Broker-Dealer ,
Churning ,
Conflicts of Interest ,
Fiduciary Duty ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Investment Adviser ,
Investment Products ,
Life Insurance ,
Regulatory Oversight ,
Regulatory Standards ,
Retail Investors ,
Securities and Exchange Commission (SEC)
EXPECTFOCUS® is a quarterly review of developments in the insurance and financial services industry, provided on a complimentary basis to clients and friends of Carlton Fields Jorden Burt, P.A.
...more
5/1/2018
/ Best Interest Contract Exemptions ,
Best Interest Standard ,
CAFA ,
Class Action ,
COI Rates ,
Corporate Governance ,
Cryptocurrency ,
Cybersecurity ,
Data Breach ,
Disclosure Requirements ,
Elder Abuse ,
Failure To Pay ,
Fiduciary Rule ,
Life Insurance ,
NAIC ,
Securities and Exchange Commission (SEC) ,
Statute of Limitations ,
TCPA
Annuity Illustration Standard Changes: On March 2, the Annuity Disclosure (A) Working Group of the National Association of Insurance Commissioners agreed to recommend the adoption of a revision to the NAIC’s Annuity...more
On February 7, the Massachusetts Securities Division asked for public comment on a fee table requirement for Massachusetts-registered investment advisers....more
EXPECTFOCUS is a quarterly review of developments in the insurance and financial services industry, provided on a complimentary basis to clients and friends of Carlton Fields Jorden Burt, P.A.
...more
1/18/2018
/ Annuities ,
Consumer Financial Products ,
Fiduciary Rule ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Innovation ,
Insurance Industry ,
Investment Management ,
Life Insurance ,
NAIC ,
Regulatory Oversight ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Whistleblower Awards ,
Whistleblowers
A recent European Union (EU) directive prohibits certain investment managers from receiving securities research whose cost is "bundled" together with broker-dealers’ costs of effecting securities transactions directed by the...more
EXPECTFOCUS® is a quarterly review of developments in the insurance and financial services industry, provided on a complimentary basis to clients and friends of Carlton Fields Jorden Burt, P.A.
...more
10/20/2017
/ Annuities ,
Best Interest Contract Exemptions ,
Big Data ,
Blockchain ,
Capital Raising ,
Conflicts of Interest ,
Cybersecurity ,
Data Security ,
Distributed Ledger Technology (DLT) ,
Elder Abuse ,
ETFs ,
Fiduciary Duty ,
Fiduciary Rule ,
Insurance Industry ,
Interest Rates ,
Investment ,
Investment Management ,
Life Insurance ,
NAIC ,
OCIE ,
Securities and Exchange Commission (SEC) ,
STOLI
The SEC has proposed for comment major revisions in the disclosures auditors are required to make in their reports on financial statements audited pursuant to Public Company Accounting Oversight Board (PCAOB) standards....more
The office of the Comptroller of the Currency (OCC) published a draft supplement to its licensing manual, to define and tailor the requirements for FINTECH companies that apply for special purpose national bank charters. This...more