Which two entities are responsible for regulating variable annuities?

The regulation of variable annuities falls under the jurisdiction of both the Department of Financial Services and the Securities Exchange Commission. The Department of Financial Services oversees the insurance aspects of variable annuities, ensuring that insurers comply with state laws and regulations. This department is responsible for licensing insurers, enforcing insurance laws, and protecting consumer rights related to insurance products.

On the other hand, the Securities Exchange Commission (SEC) governs the investment components of variable annuities. Since these products have investment risks due to their variable nature, they are classified as securities. The SEC's role is to regulate the offering and sale of these investment products, making sure that companies provide full disclosures to consumers and operate fairly in the market.

Together, these two entities ensure that variable annuities are regulated effectively from both insurance and securities perspectives, providing a comprehensive regulatory framework for these complex financial products.