Page 13 - Investment Advisor - November 2023

a tool middle- and low-income families tion form specific to RILAs.” investors receive the information they
find useful.” The full Senate in December passed need — in plain English — to make informed
the Registered Index-Linked Annuities investment decisions,” Gensler added.
seC ProPoses tIGHtenInG rILA Act, which directs the SEC to develop The proposal would require that
reGIstrAtIon a registration form designed for RILA RILAs be registered with the SEC
The Securities and Exchange products within 18 months of enactment. “using an amended version of Form N-4,
Commission in early October proposed RILAs have grown in popularity in which is the form currently used for
to update the offering process and dis- recent years, with sales more than tri- most variable annuity products,” Jason
closure requirements for registered pling in the past five years, reaching Berkowitz, chief legal and regulatory
index-linked annuities, or RILAs. about $41 billion in 2022, the SEC said. affairs officer at the Insured Retirement
The proposal, a congressional directive, “Investors’ returns in RILAs are con- Institute, said in a statement.
would require RILAs to use a registration nected, in part, to the performance of The amendments, Berkowitz said,
form tailored to their characteristics. a market index, such as the S&P 500,” “are intended to specifically address
Gary Gensler, the SEC chairman, Gensler said. “RILAs, though, are com- the features and risks associated with
said recently in a statement that he plex products. … Investor returns often RILAs. Notably, we are encouraged that
was “pleased to support this proposal are subject to caps and floors set by the under the proposal, RILA issuers would
because, if adopted, it would align the insurance company. Further, features appear to be eligible for a limited excep-
RILA offering process with other insur- such as these caps and floors may change tion, which is already available to vari-
ance investment products.” over time, and investors can experience able annuity issuers, to use statutory
Further, Gensler said, if adopted, “this losses if they withdraw money early.” financial statements rather than GAAP
rule would implement Congress’s recent Given these products’ complexity and financials only if the insurer does not
mandate to the SEC to adopt a registra- growing popularity, “it is important that otherwise prepare GAAP financials.”

If You Owned a U.S. Dollar LIBOR-Based Instrument Between August 2007 and May 2010
A Settlement Totaling $101 Million Could Affect You
There are lawsuits impacting individuals and institutions that entered into over-the-counter financial derivative and non-derivative instruments directly with
17 banks and that received payments tied to U.S. Dollar LIBOR. A Settlementtotaling $101 million has been reached with Coöperatieve Rabobank U.A.
(“Rabobank”), Lloyds Banking Group plc, Lloyds Bank plc, HBOS plc, and Ban of Scotland plc (together, “Lloyds”), Royal Bank of Canada (“RBC”), and
Portigon AG and Westdeutsche Immobilien Servicing AG (together “Portigon”). Earlier settlements totaling $680 million were reached with Barclays, Citibank,
Deutsche Bank, HSBC, MUFG, Norinchukin, and SocGen bringing the total settlement amount to $781 million. The remaining Non-Settling Defendants
include Bank of America, Credit Suisse, JPMorgan Chase, Royal Bank of Scotland, and UBS.
What are the lawsuits about?
The litigation claims that the banks manipulated the U.S. Dollar LIBOR rate during the financial crisis, artificially lowering the rate for their own profit, which
resulted in class members receiving lower interest payments for their U.S. Dollar LIBOR-Based Instruments from the banks than they should have. Plaintiffs
assert antitrust, breach of contract, and unjust enrichment claims. Rabobank, Lloyds, RBC, and Portigon deny all claims of wrongdoing.
Who is included in the Settlement?
You are included if you (individual or entity) directly purchased certain U.S. Dollar LIBOR-based instruments from Bank of America, MUFG, Barclays, Citbank,
Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Lloyds, Norinchukin, Rabobank, Royal Bank of Canada, Royal Bank of Scotland, Société
Générale, UBS, or Portigon (or their subsidiarie or affiliates) in the United States; and owned the instruments at any time between August 2007 and May
2010. The instruments in the Settlement Class include certain interest rate swaps, forward rate agreements, asset swaps collateralized debt obligations,
credit default swaps, inflation swaps, total return swaps, options, and bonds/floating rate notes.
What does the Settlement provide?
The Settlement will create a Settlement Fund totaling $101 million that will be used to pay eligible Class Members who submit valid claims, as well as
attorneys’ fees not to exceed one third of the gross settlement, expenses not to exceed $5,500,000, and service awards to the Class Representatives not
to exceed $100,000 per Representative. Additionally, Rabobank, Lloyds, RBC, and Portigon will provide certain cooperation to the Plaintiffs in their ongoing
litigation against the Non-Settling Defendants.
How can I get a payment?
You can submit a Proof of Claim online or by mail. The deadline to submit a Proof of Claim is February 10, 2024. You do not need to submit a Proof of
Claim to share in the Settlement if you previously submitted a valid Proof of Claim in the prior settlements and do not seek to modify or supplement your
Proof of Claim. You are entitled to receive a payment if you have a qualifying transaction with any of the following banks: Bank of America, MUFG, Barclays,
Citibank, Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Lloyds, Norinchukin, Rabobank, Royal Bank of Canada, Royal Bank of Scotland, Société
Générale, UBS, or Portigon (or their subsidiaries or affiliates). You do not need to have transacted with Rabobank, Lloyds, RBC, and Portigon specifically. At
this time, it is unknown how much each Class Member who submits a valid claim will receive. Visit www.USDollarLiborSettlement.com for more information
on submitting a Proof of Claim.
What are my rights?
If you are a member of the Settlement Class and you do not file a timely claim, you will lose your right to receive money or benefits from the $101 million
settlement with Rabobank, Lloyds, RBC, and Portigon unless you submitted a valid claim in a prior settlement in the OTC Action. If you would like to retain
your right to file your own lawsuit against Rabobank, Lloyds, RBC, and Portigon, you must opt out of the Settlement Class by November 17, 2023. If you
stay in the Settlement Class, you may object to the Settlement by November 17, 2023.
The Court will hold a hearing on December 12, 2023 to consider whether to approve the Settlement and approve Class Counsel’s request of attorneys’
fees of up to one-third of the Settlement Fund, plus reimbursement of costs and expenses and service payments to the Class Representatives. You or
your own lawyer may appear and speak at the hearing at your own expense. More information about the Settlement is available on the Settlement website
www.USDollarLiborSettlement.com, and in the Long Form Notice accessible on that website, or by calling 1-888-619-8688.

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