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2017


SEC Approves FINRA Efforts to Protect Seniors and Other Vulnerable Persons

SEC Approves FINRA Efforts to Protect Seniors and Other Vulnerable Persons

April 10, 2017

The SEC recently approved an amendment to FINRA Rule 4512 that requires FINRA members to make reasonable efforts to obtain, from each customer for whom they maintain an account, specified information about a “trusted contact person.”

SEC Facilitates Product Charge Variations

SEC Facilitates Product Charge Variations

April 10, 2017

SEC staff in December issued a Guidance Update that provides significant flexibility regarding how mutual funds and variable annuities (VAs) reflect multiple charge structures in their SEC registration statements.

SEC Staff Allows Brokers to Set Commissions for Mutual Fund “Clean Shares”

SEC Staff Allows Brokers to Set Commissions for Mutual Fund “Clean Shares”

April 10, 2017

The CG Letter clearly states clean shares may not be sold with sales loads or asset-based fees for sales or distribution. However, the CG Letter does not address whether a selling broker may receive service fees, such as sub-transfer agent or shareholder servicing fees, or revenue sharing payments from the fund’s adviser.

Second Circuit Affirms Dismissal of

Second Circuit Affirms Dismissal of "Shadow Insurance" Lawsuits

April 10, 2017

The suits were two of several class actions that arose in the wake of a 2013 investigation by the New York Department of Financial Services into certain captive reinsurance transactions

Signs of an Active 2017 for Laws Protecting Vulnerable Adults from Financial Exploitation

Signs of an Active 2017 for Laws Protecting Vulnerable Adults from Financial Exploitation

April 10, 2017

The North American Securities Administrators Association (NASAA)’s Model Legislation or Regulation to Protect Vulnerable Adults from Financial Exploitation (Model Act) gained traction in 2016 and appears poised for even more progress in 2017.

Spokeo Leaves Lower Courts to Wrangle With Article III Standing Issues

Spokeo Leaves Lower Courts to Wrangle With Article III Standing Issues

April 10, 2017

he United States Supreme Court issued its decision in Spokeo, Inc. v. Robins on May 16, 2016. At the time, the degree to which the decision was a punt was somewhat underreported.

Sprouting Activity at the NAIC

Sprouting Activity at the NAIC

April 10, 2017

Various NAIC groups have planted seeds for a number of regulatory initiatives that impact life insurers.

The Ninth Circuit Finds California’s Illustration Statutes Can Serve as the Predicate for UCL Liability

The Ninth Circuit Finds California’s Illustration Statutes Can Serve as the Predicate for UCL Liability

April 10, 2017

On March 3, the Ninth Circuit in Walker v. Life Ins. Co. of the SW, ruled that an alleged violation of California’s life insurance illustration statutes could serve as a predicate for liability under the California Unfair Competition Law (UCL).

Transparency Watch: Federal District Court Mandates Automatic Disclosure of Third-Party Funding Arrangements for Class Actions

Transparency Watch: Federal District Court Mandates Automatic Disclosure of Third-Party Funding Arrangements for Class Actions

April 10, 2017

In January, the U.S. District Court for the Northern District of California announced a change that makes litigants in putative class action suits subject to requirements mandating automatic disclosure of third-party funding arrangements.

Will New Administration Speed VA Summary Prospectus?

Will New Administration Speed VA Summary Prospectus?

April 9, 2017

President Trump’s nominee for SEC Chairman, Jay Clayton, could speed authorization of the variable annuity (VA) summary prospectus and related layered disclosure and shortened underlying fund report to shareholders.

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