Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Tuesday, July 13, 2010

D.C. Circuit Vacates FIA Rule 151A As Arbitrary and Capricious

Last summer (July 21, 2009) the D.C. Circuit issued its opinion in American Equity Investment Life Insurance Co. v. SEC involving the agency's authority to issue Rule 151A, which provides that fixed index annuities are not "annuities" exempt under Securities Act 3(a)(8) and therefore are subject to the registration requirements.  The Court held that while the SEC's interpretation of "annuity contract" was reasonable under Chevron, it failed to properly consider the effect of the Rule upon efficiency, competition and capital formation as required by section 2(b) of the Act.  It remanded the Rule to the SEC for further consideration.  On July 12, 2010 the D.C. Circuit "reissued" its opinion and vacated the Rule because the SEC's section 2(b) analysis was arbitrary and capricious.(Download American EquityInvestment_2010)

http://lawprofessors.typepad.com/securities/2010/07/dc-circuit-vacates-fia-rule-151a-as-arbitrary-and-capricious.html

Judicial Opinions | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0133f241d127970b

Listed below are links to weblogs that reference D.C. Circuit Vacates FIA Rule 151A As Arbitrary and Capricious:

Comments

Post a comment