HB 1423 -- SECURITIES REGULATION

SPONSOR:  Page

COMMITTEE ACTION:  Voted "do pass" by the Committee on Senior
Citizen Advocacy by a vote of 9 to 2.

This bill changes the definition of "security" as it is used in
the laws regulating securities so that the sale of variable
annuities will be regulated by the Secretary of State.
Currently, sales are regulated by the Department of Insurance.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the bill provides protection for
all investors, but specifically protects seniors by regulating
the sale of variable annuities.  Many seniors rely on a monthly,
fixed income to survive.  Because of the complex nature of
variable annuities, many seniors purchase the annuities despite
the lack of a fixed income.  The bill brings stability and
cohesion to securities regulation in the state by bringing all
vendors of investment products under a single regulatory system
and allows the Division of Securities to monitor sales practices
and implement anti-fraud measures.

Testifying for the bill were Representative Page; Office of the
Secretary of State; Michael Kickham, Financial Planners
Association of Missouri and Illinois; Missouri Association of
Independent Insurance Agents; and Department of Insurance.

OPPONENTS:  Those who oppose the bill say that rules and
regulations within the Department of Insurance are already in
place to regulate variable annuities.  The bill should not create
restitution authority in the Secretary of State's Division of
Securities.  The bill will also add an unnecessary layer of
oversight into an already heavily regulated industry.

Testifying against the bill were Life Insurance Association of
Missouri; Missouri Insurance Coalition; and American Council of
Life Insurers.

Alex Curchin, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:43 am