HB 733 -- SECURITIES REGULATION

SPONSOR:  Page

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 7 to 1.

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 governed by the Commissioner of Securities
appointed by the Secretary of State.  Currently, sales are
regulated by the Department of Insurance, Financial Institutions,
and Professional Registration.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill provides protection for
all investors, but specifically protects the elderly by
regulating the sale of variable annuities.  Many older citizens
rely on a monthly, fixed income to survive.  Because of the
complex nature of variable annuities, many seniors purchase the
annuities despite being on 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 in the
Office of the Secretary of State to monitor sales practices and
implement anti-fraud measures.

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

OPPONENTS:  Those who oppose the bill say that rules and
regulations within the Department of Insurance, Financial
Institutions, and Professional Registration are already in place
to regulate variable annuities.  The transfer of enforcement
authority will put Missouri in conflict with most other states'
laws.  Missouri has adopted the Uniform Securities Act which
specifically removed variable annuities from the oversight of the
Secretary of State and placed it with the department.  The bill
will also add an unnecessary layer of oversight in an already
heavily regulated industry.

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

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am