{"id":20785,"date":"2023-09-29T21:00:47","date_gmt":"2023-09-29T21:00:47","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2023\/09\/29\/sec-proposes-tightening-rila-registration\/"},"modified":"2023-09-29T21:00:47","modified_gmt":"2023-09-29T21:00:47","slug":"sec-proposes-tightening-rila-registration","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2023\/09\/29\/sec-proposes-tightening-rila-registration\/","title":{"rendered":"SEC Proposes Tightening RILA Registration"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/796783892\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2022\/12\/SEC_Building_Diego-Radzinschi-alm_640x640.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2022\/12\/SEC_Building_Diego-Radzinschi-alm_640x640.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span>RILAs have grown in popularity in recent years, with sales more than tripling in the past five years, reaching about $41 billion in 2022, the SEC said.<\/span><\/p>\n<p><span>\u201cInvestors\u2019 returns in RILAs are connected, in part, to the performance of a market index, such as the S&amp;P 500,\u201d Gensler said. \u201cRILAs, though, are complex products. \u2026 Investor returns often are subject to caps and floors set by the insurance company. Further, features such as these caps and floors may change over time, and investors can experience losses if they withdraw money early.\u201d<\/span><\/p>\n<p><span>Given these products\u2019 complexity and growing popularity, \u201cit is important that investors receive the information they need \u2014 in plain English \u2014 to make informed investment decisions,\u201d Gensler added.<\/span><\/p>\n<p><span>The proposal would require that RILAs be registered with the SEC \u201cusing an amended version of Form N-4, which is the form currently used for most variable annuity products,\u201d Jason Berkowitz, chief legal and regulatory affairs officer at the Insured Retirement Institute, said in a statement.<\/span><\/p>\n<p><span>The amendments, Berkowitz said, \u201care intended to specifically address the features and risks associated with RILAs. Notably, we are encouraged that under the proposal, RILA issuers would appear to be eligible for a limited exception, which is already available to variable annuity issuers, to use statutory financial statements rather than GAAP financials only if the insurer does not otherwise prepare GAAP financial statements.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RILAs have grown in popularity in recent years, with sales more than tripling in the past five years, reaching about $41 billion in 2022, the SEC said. \u201cInvestors\u2019 returns in RILAs are connected, in&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":20786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2023\/10\/sec-proposes-tightening-rila-registration.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20785"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=20785"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20785\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/20786"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=20785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=20785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=20785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}