The Financial Industry Regulatory Authority plans to keep an exemption for variable life and annuity products in a private placements rule it is updating.
A "private placement" is a non-public securities offering made using one of the registration exemption provisions in the Securities Act of 1933.
FINRA, Washington, wants to change the rule, Rule 5122, to expand conflict-of-interest disclosure requirements and eliminate an exemption from the rule requirements for FINRA members that are acting as wholesalers.
In the proposal, FINRA retains the current exemptions for variable insurance contracts, variable annuity contracts, modified guaranteed annuity contracts and modified guaranteed life insurance policies.
- Allison Bell
