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[20060]
May 19, 2006
TO: VARIABLE INSURANCE PRODUCTS ADVISORY COMMITTEE No. 4-06
RE: NASD TO FORM WORKING GROUPS TO EXAMINE ANNUITY PRODUCTS
As we previously informed you,1 on May 5, 2006, the NASD and the Minnesota Department of
Commerce co-sponsored an Annuity Roundtable in Washington, D.C. to discuss the regulatory
framework under which annuity products are marketed and sold.
In response to what the NASD states was the general consensus of Roundtable participants that
investors purchasing fixed, variable or equity indexed annuities should be comparably protected,
the NASD and the Minnesota Department of Commerce have announced that they will form working
groups to compare regulatory standards in five areas - supervision, suitability, advertising, sales force
training and disclosure requirements. It is anticipated that those working groups will be in place within
60 days.
Ari Burstein
Associate Counsel
1 Memorandum to Variable Insurance Products Advisory Committee No. 3-06 (May 15, 2006) [20050].