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H.R. 4865: Registration for Index-Linked Annuities Act

The text of the bill below is as of Jul 30, 2021 (Introduced).



1st Session

H. R. 4865


July 30, 2021

(for herself, Mr. Phillips, and Mr. Gonzalez of Ohio) introduced the following bill; which was referred to the Committee on Financial Services


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.


Short title

This Act may be cited as the Registration for Index-Linked Annuities Act.


Parity for registered index-linked annuities regarding registration rules



In this section:


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).


Market value adjustment

The term market value adjustment means, with respect to a registered index-linked annuity—


an adjustment to the value of such annuity based on calculations using a predetermined formula; or


a change in interest rates (or other factor, as determined by the Securities and Exchange Commission) that applies to such annuity following an early withdrawal or contract discontinuance.



The term purchaser means a purchaser of a registered index-linked annuity.


Registered index-linked annuity

The term registered index-linked annuity means an annuity that—


is deemed a security;


is required to be registered with the Securities and Exchange Commission;


is issued by an insurance company that is subject to the supervision of the insurance commissioner of the applicable State;


is not issued by an investment company; and


the returns of which—


are based on the performance of a specified benchmark index or rate; and


may be subject to a market value adjustment if amounts are withdrawn prior to the end of the period during which such adjustment applies.



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)).


Revision to rules


In general

Not later than 180 days after the date of the enactment of this Act, the Securities and Exchange Commission shall propose and, not later than 18 months after the date of enactment of this Act, the Commission shall prepare and finalize any 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 such registered index-linked annuity, subject to conditions the Commission determines appropriate.


Design of form

In developing the form to be established under paragraph (1), the Securities and Exchange Commission shall—


design such form to ensure that purchaser using such form receive the information necessary to make knowledgeable decisions, taking into account—


the availability of information;


the knowledge and sophistication of such purchasers;


the complexity of the registered index-linked annuity; and


any other factors the Commission determines appropriate; and


engage in investor testing and incorporate the results of such testing 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.


Treatment if revisions not completed in a timely manner

If the Securities and Exchange Commission fails to complete the revisions required by subsection (b)(1) by the time required by such subsection, any registered index-linked annuity may be registered on the form described in section 239.17b of title 17, Code of Federal Regulations. Such registration shall be prepared pursuant to applicable provisions of the form.


Rule of construction

Nothing in this Act shall be construed to—


limit the authority of the Securities and Exchange Commission to determine the information to be requested in the form described in subsection (b); or


preempt any State law, regulation, rule or order.