Memo #
23984

FINRA Incorporates Deferred Variable Annuity Sales Practice Rule into Consolidated Rulebook
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[23984]

 

November 27, 2009

TO: VARIABLE INSURANCE PRODUCTS ADVISORY COMMITTEE No. 23-09     RE: FINRA INCORPORATES DEFERRED VARIABLE ANNUITY SALES PRACTICE RULE INTO CONSOLIDATED RULEBOOK

 

The Financial Industry Regulatory Authority (“FINRA”) has filed a proposed rule change with the Securities and Exchange Commission to incorporate into the Consolidated FINRA Rulebook its rule regarding sales practices for recommended purchases and exchanges of deferred variable annuities. [1]  Former NASD Rule 2821, adopted this past April, [2] would be transferred into the Consolidated FINRA Rulebook as FINRA Rule 2330 without any substantive changes.  The implementation date for FINRA Rule 2330 would be February 8, 2010.

 

Heather L. Traeger
Associate Counsel

                                                                                                                                                                                                                                                         

 

endnotes

 [1] See Proposed Rule Change to Adopt FINRA Rule 2330 (Members' Responsibilities Regarding Deferred Variable Annuities) in the Consolidated FINRA Rulebook, FINRA 2009-083 (November 20, 2009), available at:  http://www.finra.org/web/groups/industry/@ip/@reg/@rulfil/documents/rulefilings/p120415.pdf.  

 [2] See SEC Release No. 59772 (April 15, 2009), 74 FR 18419 (April 22, 2009) and Memorandum to Variable Insurance Products Advisory Committee 8-09 and SEC Rules Members 48-09, dated April 22, 2009 [23410].