SEC creates life settlements task force
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Amid growing scrutiny of life settlements securitization, the Securities and Exchange Commission has created a task force to examine financial products, according to The Wall Street Journal.
Reports of the SEC’s interest in the packages of life settlements arrived on the heels of legislators’ increased interest in the products. Rep. Paul E. Kanjorski, D-Pa., chairman of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, yesterday announced a Sept. 24 hearing to discuss the securitization of life settlements.
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“The second part of the transaction — the purchase of an interest in the life insurance policy or a pool of policies — can be structured in a variety of ways. But in many cases, this transaction will involve the sale of a security and thus be subject to the commission’s jurisdiction,” Ms. Schapiro wrote in her April 28 letter to Mr. Kohl.
Source: InvestmentNews.com
Read Full Article: Agency is reportedly concerned with the securitization of the policies sold on the secondary market
