Tell Us about Your Experiences with Registered Index-Linked Annuities and Other
summary
The SEC requested retail investor feedback on Registered Index-Linked Annuities (RILAs) to assess disclosure clarity and sales practices, with no allegations of fraud, charges, or financial misconduct presented.
paragraph
The U.S. Securities and Exchange Commission (SEC) issued a public feedback request regarding Registered Index-Linked Annuities (RILAs), seeking input on investor understanding, disclosure comprehensibility, and experiences with bounded return structures and surrender fees. No fraud, misconduct, or enforcement actions are alleged; the document is purely a regulatory outreach tool to inform potential rulemaking on investor protections. The deadline for submissions was November 28, 2023, and responses were to be submitted without personal identifiers to support improved disclosure formats.
narrative
The U.S. Securities and Exchange Commission (SEC) released a public feedback flyer seeking input from retail investors on their experiences with Registered Index-Linked Annuities (RILAs) and other annuity products. The goal was to evaluate how well investors understood complex features such as bounded return structures, index-based gains and losses, surrender charges, and the trade-offs between market participation and downside protection. The SEC asked whether disclosure materials were clear, accessible, and helpful, and whether investors relied on financial professionals or conducted independent research before purchasing. No allegations of fraud, misrepresentation, or financial misconduct were included—this was purely a regulatory information-gathering initiative. The flyer included detailed questions about purchasing motivations, alternatives considered, document readability, and withdrawal experiences. Responses were to be submitted by November 28, 2023, with file number S7-16-23, via mail or email, and without personal identifiers. The SEC aims to use this feedback to improve disclosure requirements and investor protections, potentially shaping future rules on annuity sales and transparency—not to pursue enforcement or litigation.
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Keywords
annuityrilapleaseexplanatory detailyesinvestmentwhatinformationdocumentsaddexplanatorydetailtell aboutregistered index-linkedindex-linked annuities
Extracted insights
Triples 7
- We are requesting input from retail investors regarding registered index-linked annuities
- The investor’s gains or losses are based on whether a selected index goes up or down over a set period of time
- The annuity will limit your losses when the index goes down
- The annuity will limit your gains when the index goes up
- Participants are asked to provide comments on or before November 28, 2023
- You may pay fees or penalties
- You were aware withdrawals would be subject to such fees or penalties
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Extracted body text (6,736c)
Retail Investor Feedback Flyer Tell Us about Your Experiences with Registered Index-Linked Annuities and Other Annuity Products We are requesting input from retail investors regarding registered index-linked annuities (or “RILAs”), a type of annuity contract offered by insurance companies. In a RILA, the investor’s gains or losses are based on whether a selected index goes up or down over a set period of time, such as three years. These annuities also have what is called a “bounded return structure,” meaning that they will usually limit your losses when the index goes down, but at the cost of limiting your gains when the index goes up. We encourage interested persons to provide comments on any or all of the following questions. Please provide your comments on or before November 28, 2023 – and thank you for your feedback! P art 1: Have you purchased or considered purchasing any kind of annuity, including a RILA? If so: 1. What were your reasons for either purchasing or not purchasing the annuity? a. What features of the annuity appealed to you? 2 b. W hat were your investment goals? c.What alternatives did you consider to the annuity, if any? 2. W here did you learn about the annuity? Did someone recommend it to you? 3. What kind of annuity did you consider purchasing? Yes No Fixed annuity [ ] [ ] Variable annuity [ ] [ ] RILA [ ] [ ] 3 Other type of annuity (please specify) [ ] [ ] 4. W hat kind of annuity did you end up purchasing? Yes No Fixed annuity [ ] [ ] Variable annuity [ ] [ ] RILA [ ] [ ] Other type of annuity (please specify) [ ] [ ] 5. What documents or other materials did you use when considering the purchase? a.Did you find those documents or materials easy or challenging to understand? b. Which documents did you find to be more confusing? c. Were the documents or materials at a reading level comfortable for you? 4 Yes No [ ] [ ] (please add any explanatory detail) d.Were those documents or materials helpful? Yes No [ ] [ ] (please add any explanatory detail) e.W hat, if any, other information do you wish had been available? f.If the annuity was a RILA, how well do you think that the documents you received explained the RILA’s features? 5 g. I f the annuity was a RILA, do you think, based on the documents you received, you could explain all of the RILA’s features? Yes No [ ] [ ] (please add any explanatory detail) P art 2: Have you purchased a RILA? A RILA is a type of annuity contract where the investor’s gains or losses are based on whether a selected index goes up or down over a set period of time subject to a bounded return structure. If so: 6.Please describe your experience investing in the RILA. a.Has your experience with the RILA been consistent with your expectations for the RILA, based on any materials you read (or information that a financial professional told you) before purchasing the RILA? For example, if you purchased the RILA based on the expectation that it was a long-term investment and would allow you to participate to a degree in positive market performance while providing some protection against loss, was that your experience? Conversely, did you find that you 6 ended up having to withdraw money early and lose some of the benefits you had anticipated? Yes No [ ] [ ] (please add any explanatory detail) b. If you have withdrawn money from the RILA, did you pay fees or penalties? Yes No [ ] [ ] (please add any explanatory detail) c.Were you aware when you purchased the RILA that withdrawals would be subject to such fees or penalties? Yes No [ ] [ ] 7 (please add any explanatory detail) Part 3: When you make investment decisions, what type of information do you want? 7. When you select investments, what information sources do you most commonly read? Yes No Prospectus [ ] [ ] Annual shareholder report [ ] [ ] Website of the investment product [ ] [ ] Other information source (please explain below) [ ] [ ] (please add any explanatory detail, including any other information source not mentioned above) 8. Do you prefer to rely on a recommendation from a financial professional? Yes No [ ] [ ] 8 a.If you rely on a financial professional, do you also separately research the recommended investment? Yes No [ ] [ ] 9. Do you prefer to receive short summary documents (with more detailed disclosures available for additional research)? Yes No [ ] [ ] a. If you answered “yes”: What do you consider an appropriate length for a summary? 1-2 pages[ ] 3-5 pages[ ] 6-10 pages[ ] More than 10 pages [ ] W hat topics do you want the summary to include? For example, should the summary explain the investment being offered, any fees being charged, ways that you may not get the returns described, or the risks of the investment? 9 I f an investment product offers different features you can select (such as the type of index it tracks or the time in which the investment lasts), how would you like to see the summary organized? For example: Yes No A summary based on the decisions you will have to make when selecting among available features, and the implications of selecting various features? [ ] [ ] A summary of each feature of the investment product, to allow the reader to identify important information for a particular decision? [ ] [ ] Other (please add any explanatory detail) b.Please share any reasons you may prefer to receive a longer, more detailed disclosure document instead of a summary. Part 4: Is there anything else you want to tell us about RILAs? 10 ** Ways to Submit Your Feedback You ca n send us feedback in the following ways (include the file number S7-16-23 in your response): Print Your Responses and Mail Secretary Securities and Exchange Commission 100 F Street, NE Washington, Dc 20549-1090 Print Your Responses and Email Select a PDF printer to create a file you can email to: [email protected] Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact i n part or withhold entirely fr om publication submitted material t hat i s obscene or subject t o copyright protection. If you are i nterested in more i nformation on the proposal, or want to provide feedback on additional questions, please see the Commission’s proposing release, available at https://www.sec.gov/files/rules/proposed/2023/33-11250.pdf. Comments should be received on or before November 28, 2023. Tha nk you!
OCR text (8,934c · tika · 95% conf)
Retail Investor Feedback Flyer Tell Us about Your Experiences with Registered Index-Linked Annuities and Other Annuity Products We are requesting input from retail investors regarding registered index-linked annuities (or “RILAs”), a type of annuity contract offered by insurance companies. In a RILA, the investor’s gains or losses are based on whether a selected index goes up or down over a set period of time, such as three years. These annuities also have what is called a “bounded return structure,” meaning that they will usually limit your losses when the index goes down, but at the cost of limiting your gains when the index goes up. We encourage interested persons to provide comments on any or all of the following questions. Please provide your comments on or before November 28, 2023 – and thank you for your feedback! Part 1: Have you purchased or considered purchasing any kind of annuity, including a RILA? If so: 1. What were your reasons for either purchasing or not purchasing the annuity? a. What features of the annuity appealed to you? 2 b. What were your investment goals? c. What alternatives did you consider to the annuity, if any? 2. Where did you learn about the annuity? Did someone recommend it to you? 3. What kind of annuity did you consider purchasing? Yes No Fixed annuity [ ] [ ] Variable annuity [ ] [ ] RILA [ ] [ ] 3 Other type of annuity (please specify) [ ] [ ] 4. What kind of annuity did you end up purchasing? Yes No Fixed annuity [ ] [ ] Variable annuity [ ] [ ] RILA [ ] [ ] Other type of annuity (please specify) [ ] [ ] 5. What documents or other materials did you use when considering the purchase? a. Did you find those documents or materials easy or challenging to understand? b. Which documents did you find to be more confusing? c. Were the documents or materials at a reading level comfortable for you? 4 Yes No [ ] [ ] (please add any explanatory detail) d. Were those documents or materials helpful? Yes No [ ] [ ] (please add any explanatory detail) e. What, if any, other information do you wish had been available? f. If the annuity was a RILA, how well do you think that the documents you received explained the RILA’s features? 5 g. If the annuity was a RILA, do you think, based on the documents you received, you could explain all of the RILA’s features? Yes No [ ] [ ] (please add any explanatory detail) Part 2: Have you purchased a RILA? A RILA is a type of annuity contract where the investor’s gains or losses are based on whether a selected index goes up or down over a set period of time subject to a bounded return structure. If so: 6. Please describe your experience investing in the RILA. a. Has your experience with the RILA been consistent with your expectations for the RILA, based on any materials you read (or information that a financial professional told you) before purchasing the RILA? For example, if you purchased the RILA based on the expectation that it was a long-term investment and would allow you to participate to a degree in positive market performance while providing some protection against loss, was that your experience? Conversely, did you find that you 6 ended up having to withdraw money early and lose some of the benefits you had anticipated? Yes No [ ] [ ] (please add any explanatory detail) b. If you have withdrawn money from the RILA, did you pay fees or penalties? Yes No [ ] [ ] (please add any explanatory detail) c. Were you aware when you purchased the RILA that withdrawals would be subject to such fees or penalties? Yes No [ ] [ ] 7 (please add any explanatory detail) Part 3: When you make investment decisions, what type of information do you want? 7. When you select investments, what information sources do you most commonly read? Yes No Prospectus [ ] [ ] Annual shareholder report [ ] [ ] Website of the investment product [ ] [ ] Other information source (please explain below) [ ] [ ] (please add any explanatory detail, including any other information source not mentioned above) 8. Do you prefer to rely on a recommendation from a financial professional? Yes No [ ] [ ] 8 a. If you rely on a financial professional, do you also separately research the recommended investment? Yes No [ ] [ ] 9. Do you prefer to receive short summary documents (with more detailed disclosures available for additional research)? Yes No [ ] [ ] a. If you answered “yes”: What do you consider an appropriate length for a summary? 1-2 pages [ ] 3-5 pages [ ] 6-10 pages [ ] More than 10 pages [ ] What topics do you want the summary to include? For example, should the summary explain the investment being offered, any fees being charged, ways that you may not get the returns described, or the risks of the investment? 9 If an investment product offers different features you can select (such as the type of index it tracks or the time in which the investment lasts), how would you like to see the summary organized? For example: Yes No A summary based on the decisions you will have to make when selecting among available features, and the implications of selecting various features? [ ] [ ] A summary of each feature of the investment product, to allow the reader to identify important information for a particular decision? [ ] [ ] Other (please add any explanatory detail) b. Please share any reasons you may prefer to receive a longer, more detailed disclosure document instead of a summary. Part 4: Is there anything else you want to tell us about RILAs? 10 ** Ways to Submit Your Feedback You can send us feedback in the following ways (include the file number S7-16-23 in your response): Print Your Responses and Mail Secretary Securities and Exchange Commission 100 F Street, NE Washington, Dc 20549-1090 Print Your Responses and Email Select a PDF printer to create a file you can email to: [email protected] Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. If you are interested in more information on the proposal, or want to provide feedback on additional questions, please see the Commission’s proposing release, available at https://www.sec.gov/files/rules/proposed/2023/33-11250.pdf. Comments should be received on or before November 28, 2023. Thank you! https://www.sec.gov/files/rules/proposed/2022/33-11250.pdf 1 What were your reasons for either purchasing or not purchasing the annuity: What features of the annuity appealed to you: undefined: b What were your investment goals: What alternatives did you consider to the annuity if any: 2 Where did you learn about the annuity Did someone recommend it to you: Other type of annuity please specify: Other type of annuity please specify_2: 5 What documents or other materials did you use when considering the purchase: understand: b Which documents did you find to be more confusing: please add any explanatory detail: please add any explanatory detail_2: What if any other information do you wish had been available: 4: undefined_6: please add any explanatory detail_3: please add any explanatory detail_4: please add any explanatory detail_5: please add any explanatory detail_6: Other information source please explain below: please add any explanatory detail including any other information source not mentioned above: 8: undefined_7: Other please add any explanatory detail: disclosure document instead of a summary: undefined_12: undefined_13: Check Box112: Off Check Box113: Off Check Box114: Off Check Box115: Off Check Box116: Off Check Box117: Off Check Box118: Off Check Box119: Off Check Box120: Off Check Box121: Off Check Box122: Off Check Box123: Off Check Box124: Off Check Box125: Off Check Box126: Off Check Box127: Off Check Box128: Off Check Box129: Off Check Box130: Off Check Box131: Off Check Box132: Off Check Box133: Off Check Box134: Off Check Box135: Off Check Box136: Off Check Box137: Off Check Box138: Off Check Box139: Off Check Box140: Off Check Box141: Off Check Box142: Off Check Box143: Off Check Box144: Off Check Box145: Off Check Box146: Off Check Box147: Off Check Box148: Off Check Box149: Off Check Box150: Off Check Box151: Off Check Box152: Off Check Box153: Off Check Box154: Off Check Box155: Off Check Box156: Off Check Box157: Off Check Box158: Off Check Box159: Off Check Box160: Off Check Box161: Off