Variable Annuities

This page consolidates information and resources for firms about variable annuities (FINRA Rule 2330).

 

Joint Statement of NASD and State Regulators in Support of Annuities Suitability Rule

See the joint statement supporting a new rule to require that insurance companies and agencies recommend only suitable annuity products to their customers that NASD and state regulators from North Dakota, Iowa and Minnesota signed on May 8, 2007.

 

Notices

  • Regulatory Notice 10-05
    FINRA Reminds Firms of Their Responsibilities Under FINRA Rule 2330 for Recommended Purchases or Exchanges of Deferred Variable Annuities
  • Regulatory Notice 09-32
    SEC Approves Amendments to NASD Rule 2821 Governing Purchases and Exchanges of Deferred Variable Annuities; Effective Date: February 8, 2010
  • Regulatory Notice 08-39
    FINRA Requests Comments on Proposed New Rules Governing Communications About Variable Insurance Products; Comment Period Expired: September 30, 2008
  • Regulatory Notice 07-53
    SEC Approves New NASD Rule 2821 Governing Deferred Variable Annuity Transactions; Effective Date: May 5, 2008
  • Regulatory Notice 07-36
    FINRA Clarifies Guidance Relating to SEC Regulation S-P under Notice to Members 07-06 (Special Considerations When Supervising Recommendations of Newly Associated Registered Representatives to Replace Mutual Funds and Variable Products)

News Releases

  • 4/14/09 - FINRA Fines Fifth Third Securities $1.75 Million for 250 Unsuitable Variable Annuities Transactions
  • 1/29/08 - FINRA Fines Banc One for Unsuitable Variable Annuity Sales, Inadequate Supervision of Fixed-to-Variable Annuity Exchanges
  • 11/6/07 - FINRA Publishes Guidance, Text for New Rule Governing Deferred Variable Annuity Transactions
  • 5/8/07 - NASD, State Regulators Issue Joint Statement to Support Insurance Regulators' Model Annuity Suitability Regulation
  • 2/15/07 - NASD Charges Two Former Prudential Brokers with Facilitating Hedge Fund Manager's Deceptive Market Timing in Variable Annuities

 

E-Learning Courses

Please visit our e-learning courses page to register for one or more of the following courses.

  • AML – Retail: Variable Annuities and Variable Life Insurance
  • Variable Annuities: Suitability and Disclosure for New Purchases
  • Variable Annuities: Requirements for Representatives
  • Variable Annuities: Requirements for Supervisors
  • Variable Annuities: Sales Practice Issues for 1035 Exchanges

 

FINRA Investor Resources

Other Resources

 

Historical Information

Notices

  • Regulatory Notice 07-06
    Special Considerations When Supervising Recommendations of Newly Associated Registered Representatives to Replace Mutual Funds and Variable Products
  • Notice to Members 06-38
    Member Obligations with Respect to the Sale of Existing Variable Life Insurance Policies to Third Parties
  • Notice to Members 04-72
    Impermissible Use of Negative Response Letters for the Transfer of Mutual Funds and Variable Annuities (Changes in Broker-Dealer of Record)
  • Notice to Members 04-45
    NASD Seeks Comment on Proposed Rule to Impose Specific Sales Practice Standards and Supervisory Requirements on Members for Transactions in Deferred Variable Annuities; Comment Period Expires August 9, 2004
  • Member Alert (5/10/04)
    NASD Reminds Members of Their Responsibilities Regarding Hypothetical Tax-Deferral Illustrations in Variable Annuity Communications
  • Notice to Members 03-54
    NASD Requests Comment on Proposed Amendments to Rule 2830 (Investment Company Securities); Comment Period Expired October 17, 2003
  • Notice to Members 01-63
    SEC Approves New Rule Relating to the Application of NASD Rules and Interpretive Materials to Exempted Securities
  • Notice to Members 00-44
    The NASD Reminds Members of Their Responsibilities Regarding The Sale of Variable Life Insurance
  • Notice to Members 99-103
    SEC Approves Rule Change Relating to Sales Charges for Investment Companies and Variable Contracts; Effective Date: April 1, 2000
  • Notice to Members 99-35
    The NASD Reminds Members of Their Responsibilities Regarding the Sales of Variable Annuities
  • Notice to Member 97-48
    NASD Regulation Requests Comment on Amendments to Rules Governing Sale and Distribution of Investment Company Shares and Variable Insurance Products; Comment Period Expired September 29, 1997
  • Notice to Members 97-27
    Application of NASD Conduct Rules to Group Variable Contracts and Other Exempted Securities
  • Notice to Members 96-86
    NASD Regulation Reminds Members and Associated Persons that Sales of Variable Contracts are Subject to NASD Suitability Requirements

 

News Releases

  • 5/16/06 - Joint Statement of NASD Chairman and CEO Robert Glauber, Minnesota Commerce Commissioner Glenn Wilson Regarding Success of Annuity Roundtable
  • 3/23/06 - NASD, Minnesota Department of Commerce Announce Annuity Roundtable
  • 6/9/04 - SEC and NASD Release Joint Staff Report on Broker-Dealer Sales of Variable Insurance Products
  • 6/1/04 - NASD Fines Davenport & Co. in First Case of Deceptive Market Timing in Variable Annuities
  • 5/20/04 - NASD Disciplines Three Firms, Three Brokers for Variable Annuity Abuses
  • 4/26/04 - NASD Proposes Specific Requirements for Deferred Variable Annuity Sales
  • 1/29/04 - NASD Fines Prudential $2 Million; Orders $9.5 Million to Customers for Annuity Sales in Violation of NY Insurance Regs
  • 1/14/04 - NASD Charges Waddell & Reed with Suitability Violations Relating to Thousands of Variable Annuity Exchanges and Seeks Customer Compensation
  • 1/12/04 - NASD Bars Louisiana Broker and Orders Restitution for Unsuitable Sales of Variable Annuities and Mutual Funds
  • 5/27/03 - NASD Takes Disciplinary Actions for Variable Annuity Abuses and Issues Investor Alert on Variable Products
  • 2/15/01 - NASD Regulation Files Six Enforcement Actions Involving Marketing and Sales of Variable Annuities
  • 12/5/01 - NASD Regulation Announces Two Enforcement Actions Involving Sales of Variable Annuity and Life Insurance Contracts

 

Last Updated: 5/26/2010