Which entities regulate variable insurance and variable annuities?

Variable insurance and variable annuities are regulated by multiple entities to ensure consumer protection and adherence to industry standards. The correct answer includes the SEC (Securities and Exchange Commission), FINRA (Financial Industry Regulatory Authority), and the Department of Insurance, all of which play vital roles in oversight.

The SEC regulates variable products as securities due to their investment component, ensuring that they comply with federal securities laws. FINRA is responsible for overseeing the broker-dealers and financial professionals involved in selling these products, enforcing rules for fair practice and transparency. The Department of Insurance oversees the insurance components, ensuring that policy provisions comply with state insurance laws and that the insurers are financially sound and operating fairly within the marketplace.

This multi-layered regulatory framework is essential because variable products blend characteristics of both insurance and securities. By having oversight from these three entities, consumers benefit from protections that cover various aspects of the financial and insurance sectors.