SEC EXTENDS COMMENT PERIOD FOR PROPOSED NASD RULE RELATING TO TRANSACTIONS IN DEFERRED VARIABLE ANNUITIES

©2005 Investment Company Institute. All rights reserved. Information may be abridged and therefore incomplete. Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice. [19069] August 5, 2005 TO: SEC RULES COMMITTEE No. 46-05 VARIABLE INSURANCE PRODUCTS ADVISORY COMMITTEE No. 7-05 RE: SEC EXTENDS COMMENT PERIOD FOR PROPOSED NASD RULE RELATING TO TRANSACTIONS IN DEFERRED VARIABLE ANNUITIES As we recently reported to you, the Securities and Exchange Commission published a revised version of the NASD’s proposed new Rule 2821 that would impose recommendation requirements (including a suitability obligation), principal review and approval requirements, and supervisory and training requirements tailored specifically to transactions in deferred variable annuities. 1 As reported, the comment period for the proposal is scheduled to end on August 11, 2005; however, in order to give the public additional time to comment on the proposed rule, the SEC has decided to extend the comment period to Monday, September 19, 2005.2 The Institute will be submitting a comment letter on the NASD proposal. If you have comments that you would like to be considered in the letter, please provide them to Barry Simmons at 202/326-5923 or bsimmons@ici.org. Barry E. Simmons Associate Counsel 1 See Memorandum to SEC Rules Committee No. 44-05 and Variable Insurance Products Advisory Committee No. 6-05, dated August 2, 2005. 2 See Self-Regulatory Organizations; National Association of Securities Dealers Inc.; Notice of Extension of the Comment Period for the Proposed Rule and Amendment No. 1 Thereto Relating to Sales Practice Standards and Supervisory Requirements for Transactions in Deferred Variable Annuities; Corrected, SEC Release No. 34-52046A (July 19, 2005). The NASD’s release is available at http://www.sec.gov/rules/sro/nasd/34-52191.pdf.