A group of five trade associations sent a letter to the leadership of the House Financial Services Committee today urging them to bring the Registration for Index Linked Annuities (RILA) Act to the House floor for a vote prior to the midterm elections.
The letter was sent by the Insured Retirement Institute, American Council of Life Insurers, Committee of Annuity Insurers, Finseca, and the National Association of Insurance and Financial Advisors. The RILA Act (H.R. 4865) also is supported by the Consumer Federation of America.
“The House Financial Services Committee’s vote to advance the Registered Index-Linked Annuities Act is a step toward giving consumers greater access to innovative products tailored to meet specific retirement needs,” said Wayne Chopus, IRI President and CEO. “Consumer demand for RILAs continues to accelerate because they can bring balance to retirement portfolios by allowing participation in market growth while reducing exposure to market loss, helping savers reach retirement goals. IRI will now work to bring this bipartisan measure to the House floor quickly.”
The group says H.R. 4865 will serve consumers by reducing regulatory barriers, facilitate the offering of innovative annuity products such as Registered Index Linked Annuities (RILAs), and ensure pertinent information is provided to consumers to make knowledgeable decisions about an annuity product they may choose to purchase.
“We support this bill because it will lower a significant barrier that is preventing this innovative retirement income product from being used by more consumers who desire an annuity product providing some protection of their investment principal from market loss, while also allowing participation in market growth,” the letter states. “The bill requires the U.S. Securities and Exchange Commission (SEC) to modernize and replace the current forms being used to file RILAs with a new registration form more closely tailored to this product. This new form would ensure that consumers receive the relevant information needed to make an informed choice about purchasing a RILA, eliminating extraneous information that currently makes the filing process more onerous and understanding the product more difficult.”
The measure was unanimously passed by the House Finance Committee on July 27.