Registered index-linked annuity (RILA) products offer a good option for some consumers who want to benefit from market growth while reducing their exposure to market losses. These are long-term, tax-deferred investments that are often well-suited for investors who are preparing for retirement, especially those who are retired or are nearing retirement and wish to reduce the impact of market downturns.
Unfortunately, the Securities and Exchange Commission (SEC) paperwork required to register RILAs is unnecessarily burdensome and confusing. It requires financial institutions to submit forms more often used for initial public offerings or other “catch-all” forms that require a great deal of extraneous information not relevant to RILAs and not readily available to insurance firms offering RILAs.
NAIFA, along with several of our industry partners, strongly supports the “Registration for Index Linked Annuities (RILA) Act” (S.3795/H.R.6994), which would require the SEC to create a simpler for specific to RILA registrations.
The groups sent a letter supporting the legislation to Sens. Tina Smith (D-MN) and Thom Tillis (R-NC), and Reps. Dean Phillips (D-MN) and Steve Stivers (R-OH), who introduced the bill in the Senate and House of Representatives, respectively.
“Registered index-linked annuities have become very popular among people planning for retirement,” said NAIFA CEO Kevin Mayeux. “The RILA Act would make it easier for companies to provide investors more options without reducing consumer protections. It’s good, common-sense legislation.”