Filed Under:Markets, Regulation/Legislation

SEC Considers Volcker Rule Exemption for Insurers

SEC Chair Mary Schapiro (AP Photo/Harry Hamburg)
SEC Chair Mary Schapiro (AP Photo/Harry Hamburg)

NU Online News Service, March 8, 2:30 p.m. EST

The Securities and Exchange Commission is considering giving insurers a broad exemption from the Volcker Rule, that section of the Dodd-Frank Wall Street Reform and Consumer Protection Act which restricts financial institutions from engaging in certain kinds of speculative investing. The rule is scheduled to be implemented on July 21, 2012.

In answering a question at a House Appropriations Committee subcommittee hearing yesterday, SEC chairman Mary Schapiro said the agency is considering exempting insurer activity in covered funds as well as investments in their general account from the Volcker rule.

The hearing was held by the Financial Services and General Government Subcommittee of the House Appropriations Committee.

Rep. Jo-Ann Emerson (R-Mo.) heads the subcommittee.

Schapiro’s comment was made in response to a question from Rep. Rodney Alexander (R-La.).

Alexander said the current proposal for implementing the Volcker Rule does not capture the intent of Congress—which is to exempt insurance companies from the ban on investments in private-equity deals.

He said that, “Cutting off that ability to insurance companies would impact the ability of [my] constituents to guarantee for uncertainties of life.”

He added that, the goal of the Volcker rule would make retirement and long-term care insurance more costly by limiting insurers’ ability to invest in covered funds.

In response, Schapiro said that the Volcker Rule does not allow for investment in covered funds by insurance company general accounts.

“This is a really important issue and we are reviewing the comment letters and meeting with insurance companies," Schapiro said. “We are looking at whether there can be flexibility on this point."

Originally published on LifeHealthPro. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Top Story

The 5 rules for winning over millennial customers

You know you'll have to master selling to millennials sooner or later. Here are the keys to this growing market.

CE & Training

One Low Price for Complete Access to All Courses

Choose from National Underwriter's complete library of courses available in your state to get the credits you need quickly and affordably. Take advantage of the Open Pass Package for only $49. Click here to start your training today!

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone
         
Close

Advertisement. Closing in 15 seconds.