NASD Notice to Members 05-50 - August 2005

Member Responsibilities for Supervising Sales of Unregistered Equity-Indexed Annuities

Executive Summary

This Notice to Members addresses the responsibility of firms to supervise the sale by their associated persons of equity-indexed annuities (EIAs) that are not registered under the federal securities laws.1

 

Questions concerning this Notice may be directed to Thomas M. Selman, Senior Vice President, Investment Companies/Corporate Financing, (240) 386-4500.

 

1 The sale of an EIA registered under the federal securities laws is subject to the full panoply of regulation applicable to the sale of any security. The principles articulated in this Notice apply to EIAs that are sold by associated persons of a broker-dealer, whether the EIA has been manufactured by an insurance company that is affiliated with the broker-dealer or by an unaffiliated insurance company.