"The Commission and other regulators, for their part, seek to protect investors in variable annuities through, among other things, disclosure and suitability requirements."
Commissioner Annette L. Nazareth
U.S. Securities and Exchange Commission
Remarks at the National Association for Variable Annuities 2006 Compliance and Regulatory Affairs Conference
Variable Insurance Product Services
The regulatory environment for VIP products is highly complex. With SEC and FINRA emphasis on risk-based examinations, examiners are heavily testing in the following key areas: (1) unsuitable sales and switching, especially to seniors; (2) failure to disclose critical information to customers; (3) improper sales contests; and (4) the failure of broker-dealers to maintain and enforce adequate written supervisory procedures which might prevent or detect abuses in each of the previously-mentioned areas.
ACA’s professionals assist life insurance companies and VIP distributors with the compliance complexities surrounding VIPs. ACA brings expertise to help management understand how to best develop adequate and effective risk-based protocols to meet regulatory requirements and expectations.
ACA assures compliance for life insurance companies and VIP distributors by providing:
Compliance and Supervisory Program Reviews
- Mock SEC variable insurance product back-office administrative examinations
- Rule 38a-1 annual compliance review (insurance company and service providers)
- Outsourced “internal audit” function reviews, including Rule 3010 reviews
- Licensing, registration, and insurance appointment procedures reviews
- AML VIP and Rule 3011 independent testing/reviews
Additional Consulting Services
- Assessment of surveillance and monitoring program guidelines and adequacy of risk-based parameters
- Development of customized written supervisory, desktop operating, and surveillance procedures
- Review of compliance program design and effectiveness within existing operating procedures
- Development of customized suitability forms and suitability guidelines, including sales to seniors, rider guarantees, replacements, and investment objectives
- Evaluation of the adequacy of existing staffing and technology resources
- On site SEC or FINRA inspection support
- Advertising and sales literature reviews
- Regulatory-mandated consulting
- Insurance company business unit and compliance training
- Supervisor and representative compliance training
We welcome the opportunity to speak with you. If you are interested in a customized proposal, please contact Kathleen Ujvari at (202)955-5800 or kujvari@acacompliancegroup.com.