[Congressional Record Volume 168, Number 189 (Tuesday, December 6, 2022)]
[Senate]
[Pages S7003-S7004]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
REGISTRATION FOR INDEX-LINKED ANNUITIES ACT
Ms. HASSAN. Madam President, I ask unanimous consent that the
Committee on Banking, Housing, and Urban Affairs be discharged from
further consideration of S. 3198 and that the Senate proceed to its
immediate consideration.
The PRESIDING OFFICER. The clerk will report the bill by title.
[[Page S7004]]
The senior assistant legislative clerk read as follows:
A bill (S. 3198) to direct the Securities and Exchange
Commission to revise any rules necessary to enable issuers of
index-linked annuities to register on a form tailored
specifically to registered index-linked annuities, and for
other purposes.
There being no objection, the committee was discharged, and the
Senate proceeded to consider the bill.
Ms. HASSAN. I ask unanimous consent that the Smith-Tillis substitute
amendment, which is at the desk, be considered and agreed to; that the
bill, as amended, be considered read a third time and passed, and the
motion to reconsider be considered made and laid upon the table.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 6506), in the nature of a substitute, was agreed
to, as follows:
(Purpose: In the nature of a substitute)
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Registration for Index-
Linked Annuities Act''.
SEC. 2. PARITY FOR REGISTERED INDEX-LINKED ANNUITIES
REGARDING REGISTRATION RULES.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(2) Investment company.--The term ``investment company''
has the meaning given the term in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3).
(3) Market value adjustment.--The term ``market value
adjustment'' means, with respect to a registered index-linked
annuity, after an early withdrawal or contract
discontinuance--
(A) an adjustment to the value of that annuity based on
calculations using a predetermined formula; or
(B) a change in interest rates (or other factor, as
determined by the Commission) that apply to that annuity.
(4) Purchaser.--The term ``purchaser'' means a purchaser of
a registered index-linked annuity.
(5) Registered index-linked annuity.--The term ``registered
index-linked annuity'' means an annuity--
(A) that is deemed to be a security;
(B) that is registered with the Commission in accordance
with section 5 of the Securities Act of 1933 (15 U.S.C. 77e);
(C) that is issued by an insurance company that is subject
to the supervision of--
(i) the insurance commissioner or bank commissioner of any
State; or
(ii) any agency or officer performing like functions as a
commissioner described in clause (i);
(D) that is not issued by an investment company; and
(E) the returns of which--
(i) are based on the performance of a specified benchmark
index or rate (or a registered exchange traded fund that
seeks to track the performance of a specified benchmark index
or rate); and
(ii) may be subject to a market value adjustment if amounts
are withdrawn before the end of the period during which that
market value adjustment applies.
(6) Security.--The term ``security'' has the meaning given
the term in section 2(a) of the Securities Act of 1933 (15
U.S.C. 77b(a)).
(b) Rules.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Commission shall propose, and, not
later than 18 months after the date of enactment of this Act,
the Commission shall prepare and finalize, new or amended
rules, as appropriate, to establish a new form in accordance
with paragraph (2) on which an issuer of a registered index-
linked annuity may register that registered index-linked
annuity, subject to conditions the Commission determines
appropriate, which may include requiring the issuer to take
the steps described in section 240.12h-7(e) of title 17, Code
of Federal Regulations, or any successor regulation, with
respect to the registered index-linked annuity.
(2) Design of form.--In developing the form required to be
established under paragraph (1), the Commission shall--
(A) design the form to ensure that a purchaser using the
form receives the information necessary to make knowledgeable
decisions, taking into account--
(i) the availability of information;
(ii) the knowledge and sophistication of that class of
purchasers;
(iii) the complexity of the registered index-linked
annuity; and
(iv) any other factor the Commission determines
appropriate;
(B) engage in investor testing; and
(C) incorporate the results of the testing required under
subparagraph (B) in the design of the form, with the goal of
ensuring that key information is conveyed in terms that a
purchaser is able to understand.
(c) Treatment if Rules Not Prepared and Finalized in a
Timely Manner.--
(1) In general.--If, as of the date that is 18 months after
the date of enactment of this Act, the Commission has failed
to prepare and finalize the rules required under subsection
(b)(1), any registered index-linked annuity may be registered
on the form described in section 239.17b of title 17, Code of
Federal Regulations, or any successor regulation.
(2) Preparation.--A registration described in paragraph (1)
shall be prepared pursuant to applicable provisions of the
form described in that paragraph.
(3) Termination.--This subsection shall terminate upon the
establishment by the Commission of the form described in
subsection (b).
(d) Rules of Construction.--Nothing in this section may be
construed to--
(1) limit the authority of the Commission to--
(A) determine the information to be requested in the form
described in subsection (b); or
(B) extend the eligibility for the form described in
subsection (b) to a product that is similar to, but is not, a
registered index-linked annuity; or
(2) preempt any State law, regulation, rule, or order.
The bill (S. 3198), as amended, was ordered to be engrossed for a
third reading, was read the third time, and passed.
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