News & Analysis as of

Insurance Industry Investment Company Act of 1940

Woodruff Sawyer

Guide to D&O Insurance for SPAC IPOs, 2024 Edition

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As they go through their initial public offering (IPO) and the subsequent merger & acquisition (M&A) process, special purpose acquisition companies (SPACs) face many regulatory, legal, and business hurdles. Obtaining the...more

Carlton Fields

New Era for Variable Product Fund Substitutions: SEC Removes Obstacles

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About 20 years ago, the SEC began scrutinizing variable product fund “substitution” applications in ways that increased both the time required to obtain SEC approval and the conditions necessary to obtain such approval. The...more

Carlton Fields

SEC Limits Need for Substitution Applications

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On February 23, the Securities and Exchange Commission issued a statement setting forth a “no-action” position regarding when substitutions by an insurance company of mutual funds held in a variable separate account may be...more

Vedder Price

Practice Pointer: Informal Guidance from the SEC Staff Regarding Rule 30e-3’s Transition Period Requirements for Variable...

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The staff of the Securities and Exchange Commission (SEC) has informally provided Vedder Price with key interpretive guidance clarifying the transition period disclosure requirements for issuers of variable insurance products...more

Dechert LLP

SEC Issues Proposed Rule Permitting Variable Annuity and Variable Life Insurance Contracts to Use Layered Disclosure

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The U.S. Securities and Exchange Commission announced on October 30, 2018 that it had voted to issue a proposed rule and form amendments1 that would allow insurers offering variable annuity and/or variable life insurance...more

Carlton Fields

SEC Staff Allows Brokers to Set Commissions for Mutual Fund “Clean Shares”

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On January 11, the SEC staff issued an interpretive letter to the Capital Group (CG Letter) stating that Section 22(d) of the Investment Company Act does not prevent brokers from charging commissions for effecting...more

Carlton Fields

AXA Prevails at First Post-Jones v. Harris Excessive Fee Trial

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In its 2010 opinion in Jones v. Harris, L.P., the United States Supreme Court embraced the so-called Gartenberg standard for assessing an investment adviser’s fiduciary liability for excessive mutual fund fees under Section...more

Dechert LLP

Federal Court Issues Trial Ruling in Section 36(b) “Manager of Managers” Lawsuit: AXA Advisory and Administrative Fees Held Not to...

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The U.S. District Court for the District of New Jersey issued its post-trial ruling on August 25, 2016 in Sivolella v. AXA Equitable Life Insurance Company—the first Section 36(b) trial decision since 2009. The Court...more

Morgan Lewis

SEC Staff Issues No-Action Letter on Index Fund Investments in Insurance Companies and Securities Related Businesses

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SEC staff expands upon prior no-action positions to permit funds that track a third-party index to invest in insurance companies and securities related businesses beyond the limitations set forth in Sections 12(d)(2) and...more

WilmerHale

Life and Annuity Series: Significant Litigation Risks

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WilmerHale Partner Charles Platt, a leading commercial litigator who is recognized nationally for his work defending financial services and insurance companies, periodically drafts legal news alerts for clients about the life...more

WilmerHale

Life and Annuity Series: Excessive Fee Cases

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Below is an update on the "excessive fee" cases under section 36(b) of the Investment Company Act of 1940. Most of these complaints are now proceeding on the "sub-adviser" theory: that annuity contract-holders pay...more

Goodwin

Financial Services Weekly News Roundup - April 2015 #5

Goodwin on

Ninth Circuit Denies Rehearing of Northstar v. Schwab. On April 28, the U.S. Court of Appeals for the Ninth Circuit denied the petition of Schwab Investments’ (Schwab) for rehearing and rehearing en banc in the case of...more

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