Which two entities regulate variable annuities?
Understand the Problem
The question is asking about the regulatory bodies that oversee variable annuities, which are financial products. This will involve identifying the two primary entities responsible for this regulation in the financial industry.
Answer
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
The two entities that regulate variable annuities are the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Answer for screen readers
The two entities that regulate variable annuities are the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
More Information
Variable annuities are regulated as securities due to their investment component and are subject to both federal securities laws and FINRA oversight.
Tips
A common mistake is thinking that state insurance regulators also have jurisdiction over variable annuities; however, their primary regulation is at the federal level by the SEC and FINRA.
Sources
- Variable Annuities - FINRA - finra.org
- Variable Annuities: What You Should Know - SEC - sec.gov
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