Regulatory Notice 08-39

FINRA Requests Comments on Proposed New Rules Governing Communications About Variable Insurance Products; Comment Period Expired: September 30, 2008

Executive Summary

FINRA requests comment on proposed changes to guidelines on illustrations of tax-deferred versus taxable compounding in advertising and sales literature (NASD Interpretive Material 2210-1) and communications with the public about variable life insurance and variable annuities (NASD Interpretive Material 2210-2). The proposal would:

  • shorten and simplify existing provisions regarding product identification, liquidity and guarantee claims;
  • consolidate previous FINRA staff guidance concerning variable insurance product communications;
  • address changes in variable insurance products and the manner in which they are advertised, particularly with regard to riders, hypothetical illustrations and investment analysis tools; and
  • codify FINRA staff guidance concerning comparative illustrations of The mathematical principle of tax-deferred versus taxable compounding.

Questions concerning this Notice should be directed to Joseph P. Savage, Vice President and Counsel, Investment Companies Regulation, at (240) 386-4534; or Thomas A. Pappas, Vice President and Director, Advertising Regulation, at (240) 386-4553.

View Full Notice PDF 168 KB

The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.

Comments By Date Received
Mutual Trust Co. of America Securities (PDF 17 KB) 8/14/2008
H. Mark Saunders (PDF 14 KB) 8/14/2008
Ronald Nelson (PDF 14 KB) 8/15/2008
People's Securities (PDF 16 KB) 9/23/2008
Transamerica Capital, Inc. (PDF 55 KB) 9/29/2008
AARP (PDF 1,200 KB) 9/29/2008
AARP (PDF 1,199 KB) 9/29/2008
David Lerner Associates, Inc. (PDF 16 KB) 9/29/2008
Investment Company Institute (PDF 92 KB) 9/30/2008
ACLI (PDF 51 KB) 9/30/2008
Committee of Annuity Insurers (PDF 595 KB) 9/30/2008
NAVA, Inc. (PDF 24 KB) 9/30/2008
Public Investors Arbitration Bar Association (PDF 186 KB) 9/30/2008
Jefferson National Securities Corporation (PDF 118 KB) 9/30/2008
The Principal Financial Group (PDF 28 KB) 9/30/2008
Cornell Law School Securities Law Clinic (PDF 2,489 KB) 9/30/2008
The Penn Mutual Life Insurance Company (PDF 13 KB) 9/30/2008
State of New York Insurance Department (PDF 39 KB) 9/30/2008