Nev. Admin. Code § 688A.Sec. 24 - NEW
1. Recommendations and sales of annuities
made in compliance with comparable standards shall satisfy the requirements of
sections 3 to 27, inclusive. This section applies to all recommendations and
sales of annuities made by financial professionals in compliance with business
rules, controls and procedures that satisfy a comparable standard even if such
standard would not otherwise apply to the product or recommendation at issue.
However, nothing in this section shall limit the ability of the Commissioner to
investigate and enforce the provisions of sections 3 to 27,
inclusive.
2. Nothing in subsection
1 shall limit the obligations of an insurer to comply with subsection 1 of
section 22, although the insurer may base its analysis on information received
from either the financial professional or the entity supervising the financial
professional.
3. For subsection 1
to apply, an insurer shall:
(a) Monitor the
relevant conduct of the financial professional seeking to rely on subsection 1
or the entity responsible for supervising the financial professional, such as
the financial professional's broker-dealer or an investment advisor registered
under federal or state securities laws, using information collected in the
normal course of the business of the insurer; and
(b) Provide to the entity responsible for
supervising the financial professional seeking to rely on subsection 1, such as
the financial professional's broker-dealer or investment advisor registered
under federal or state securities laws, information and reports that are
reasonably appropriate to assist such entity to maintain its supervision
system.
4. As used in
this section:
(a) "Comparable standards"
means:
(1) With respect to broker-dealers and
registered representatives of broker-dealers, applicable rules of the
Securities and Exchange Commission, or its successor, or the Financial Industry
Regulatory Authority, or its successor, pertaining to best interest obligations
and supervision of annuity recommendations and sales, including, without
limitation, Rules 2111 and 3110 of the Financial Industry Regulatory Authority,
and any amendments or successors to such Rules, and Regulation Best Interest of
the Securities and Exchange Commission, and any amendments or successor
regulations thereto;
(2) With
respect to investment advisers registered under federal or state securities
laws or investment adviser representatives, the fiduciary duties and all other
requirements imposed on such investment advisers or investment adviser
representatives by contract or under the federal Investment Advisors Act of
1940 or NRS
90.575 or any other applicable laws or
regulations of this State relating to securities, including, without
limitation, the Form ADV of the Securities and Exchange Commission and
interpretations; and
(3) With
respect to plan fiduciaries or fiduciaries, the duties, obligations,
prohibitions and all other requirements attendant to such status under the
federal Employee Retirement Income Security Act of 1974,
29 U.S.C. §§
1001 et seq., or the Internal Revenue Code
and any amendments or successor statutes thereto.
(b) "Financial professional" means a producer
that is regulated and acting as:
(1) A
broker-dealer registered under federal or state securities laws or a registered
representative of a broker-dealer;
(2) An investment adviser registered under
federal or state securities laws or an investment adviser representative
associated with the federal or state registered investment adviser;
or
(3) A plan fiduciary under
section 3(21) of the federal Employee Retirement Income Security Act of 1974 or
fiduciary under section 4975(e)(3) of the Internal
Revenue Code or any amendments or successor statutes thereto.
Notes
NRS 679B.130
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