SEC enforcement actions put spotlight on VA switches. (Regulation).(variable annuities)(Brief Article)

National Underwriter Life & Health-Financial Services Edition, July, 2002 by Krawczyk, Susan

The regulatory spotlight is on variable annuity exchanges, as evidenced by three recent enforcement actions taken by the Securities and Exchange Commission.

These actions have important implications for registered representatives who recommend such exchanges and also for their supervisors and broker-dealers.

To see how, take the following "test." It's designed to help you see if you can tell a good VA exchange from a bad one, according to the standards set forth in the recent rulings. (A "bad" exchange, in this sense, is one that could expose a rep to monetary penalties from the SEC or even lead to the rep being barred from participation in the securities industry.)

Quiz for Sales Reps

Your client is invested in 10 of the 20...

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