American Equity Update on 2-Year Rule 151A Delay

Nick Gerhart, Vice President of Compliance Communication for American Equity, has posted an update for all interested parties on the recent developments concerning the litigation with the SEC over Rule 151A at the Web site www.SEC151a.com.

On Dec. 8, 2009, the SEC filed its supplemental brief to the industry brief regarding what the appropriate remedy should be over SEC Rule 151A. In their supplemental brief the SEC agreed to a two year delay on the effective date for Rule 151A. The delay will run from the date of publication of the reissued or retained Rule 151A in the Federal Register. The SEC also states in its supplemental brief that it has taken initial steps toward completing a Section 2 (b) analysis. That analysis considers the rules impact on efficiency, competition and capital formation. The Court will now rule on these briefs.

"Now we are waiting for the Court to rule on the briefs before it," Gerhart says in his update. "We do not know what the outcome will be or when we will get a ruling. The Court has a few options at this time. The Court may vacate SEC Rule 151A, or the Court may leave SEC Rule 151A on remand at the SEC and formalize the two year delay of the effective date put forward by the SEC in its supplemental brief. We cannot predict what the Court will do."