Registration for Index Linked Annuities Act of 2020

II 116TH CONGRESS 2D SESSION S. 3795 To direct the Securities and Exchange Commission to revise any rules nec- essary to enable issuers of index-linked annuities to use the securities offering forms that are available to other issuers of securities IN THE SENATE OF THE UNITED STATES MAY 21, 2020 Ms. SMITH (for herself and Mr. TILLIS) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To direct the Securities and Exchange Commission to revise any rules necessary to enable issuers of index-linked an- nuities to use the securities offering forms that are avail- able to other issuers of securities Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Registration for Index 4 Linked Annuities Act of 2020’’. 5 VerDate Sep 11 2014 02:11 Jun 13, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3795.IS S3795 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3795 IS SEC. 2. PARITY FOR REGISTERED INDEX LINKED ANNU- 1 ITIES REGARDING REGISTRATION RULES. 2 (a) DEFINITION.—In this section, the term ‘‘reg- 3 istered index linked annuity’’ means an annuity that— 4 (1) is deemed a security; 5 (2) is required to be registered with the Securi- 6 ties and Exchange Commission; 7 (3) that is issued by an insurance company that 8 is subject to the supervision of the insurance com- 9 missioner of the applicable State; 10 (4) is not issued by an investment company; 11 and 12 (5) the returns of which— 13 (A) are based on the performance of a 14 specified index rate or other financial tracking 15 vehicle; 16 (B) are subject to a modification of posi- 17 tive and negative returns by a financial calcula- 18 tion mechanism; and 19 (C) may be subject to a market value ad- 20 justment if amounts are withdrawn prior to the 21 end of the period during which such adjustment 22 applies. 23 (b) REVISION TO RULES.—Not later than the end of 24 the 180-day period beginning on the date of enactment 25 of this Act, the Securities and Exchange Commission shall 26 VerDate Sep 11 2014 02:11 Jun 13, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3795.IS S3795 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3795 IS propose and, not later than 1 year after the date of enact- 1 ment of this Act, the Commission shall prepare and final- 2 ize any new or amended rules, as appropriate, to establish 3 a new form on which an issuer of a registered index linked 4 annuity may register such registered index linked annuity, 5 subject to conditions the Commission determines appro- 6 priate. Any action that the Securities and Exchange Com- 7 mission takes pursuant to this subsection shall consider 8 the availability of information to investors. 9 (c) TREATMENT IF REVISIONS NOT COMPLETED IN 10 A TIMELY MANNER.—If the Securities and Exchange 11 Commission fails to complete the revisions required by 12 subsection (b) by the time required by such subsection, 13 any registered index linked annuity may be registered on 14 the form described in section 239.17b of title 17, Code 15 of Federal Regulations. Such registration shall be pre- 16 pared pursuant to applicable provisions of the form. 17 (d) RULE OF CONSTRUCTION.—Nothing in this Act 18 shall be construed to limit the authority of the Securities 19 and Exchange Commission to determine the information 20 to be requested in the form described in subsection (b). 21 Æ VerDate Sep 11 2014 02:11 Jun 13, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S3795.IS S3795 kjohnson on DSK79L0C42PROD with BILLS