SUMMARY
On September 29, 2023, the Securities and Exchange Commission (the “SEC”) proposed a rule and certain
form amendments (the “Proposal”) to provide a tailored disclosure form for offerings of registered index linked annuities (“RILAs”).1 The SEC issued this Proposal to implement the requirements of Division AA,
Title I of the Consolidated Appropriations Act, 2023 (the “RILA Act”), which required the SEC to design a form to ensure that purchasers of a RILA receive the information necessary to make “knowledgeable decisions,” within 18 months of its December 28, 2022 enactment, taking into account: (i) the availability of information; (ii) the knowledge and sophistication of that class of purchasers; (iii) the complexity of the RILA; and (iv) any other factor the Commission determines appropriate.2 The RILA Act also requires the SEC to engage in investor testing as part of its rulemaking process and to incorporate the results of such testing in the form design, with the goal of ensuring that key information is conveyed in terms that a purchaser is able
to understand.3
If the Commission fails to adopt the form within 18 months of enactment, the RILA Act provides that RILA issuers will be able to begin registering RILA offerings on existing Form N-4.
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