Administration April 5, 2004

Insurance Co. Under Abusive Trading Practices Scrutiny

May 4, 2004 (PLANSPONSOR.com) - Federal and state securities regulators are focusing on a Louisville insurance company for market-timing and late-trading activities that were processed through variable annuity contracts.
Reported by

In a recent regulatory filing with the U.S. Securities and Exchange Commission (SEC), Jefferson National Life Insurance Co. of New York disclosed that it had been notified that the SEC was considering an injunction against it for abusive fund trading within its variable annuities, the Louisville Courier-Journal reported.

Jefferson National’s SEC filing also said New York Attorney General Eliot Spitzer’s office is contemplating similar charges based on alleged violations of state law. Spitzer has been a key figure in the continuing federal/state fund industry probe that has focused on market timing, late trading, and certain fund sales practices.

Federal and state regulators have been cracking down on rapid, in-and-out trading involving variable annuities, which are often sold as income vehicles for retirees.

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