Securities Law Updates | New Statutes, Regulations and Rules
August 20, 2010
SEC Staff Report: Life Settlements Should be Classified as Securities Subject to Federal Securities Laws
Staff Report to the United States Securities and Exchange Commission
Release No. 2010-129, 7/22/2010
The Securities and Exchange Commission (“SEC,” or “Commission) has released a staff report recommending that life settlements be clearly defined as securities so that the investors in these transactions are protected under the federal securities laws.
By way of background, a life settlement is a transaction in which an individual with a life insurance policy sells that policy to another person, who then assumes responsibility for paying the premiums. Typically, the seller no longer wants the policy or can no longer afford to pay the premiums. In exchange, the insured party typically receives a lump sum payment that exceeds the policy’s…
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View a PDF of the regulation
