31.09.12.07

.07 Compliance with FINRA Requirements.

A. FINRA Requirements.

(1) Sales made in compliance with FINRA requirements pertaining to suitability and supervision of annuity transactions shall satisfy the requirements under this chapter.

(2) This regulation applies to FINRA broker-dealer sales of variable annuities and fixed annuities if the suitability and supervision are similar to those applied to variable annuity sales.

(3) Noncompliance with FINRA requirements means that the broker-dealer transaction is subject to compliance with the suitability requirements of this chapter.

(4) Nothing in this regulation shall limit the Commissionerís ability to enforce the provisions of this regulation.

B. Insurer Requirements. For §A of this regulation to apply, an insurer shall:

(1) Monitor the FINRA member broker-dealer using information collected in the normal course of the insurerís business; and

(2) Provide the FINRA member broker-dealer information and reports that are reasonably appropriate to assist the FINRA member broker-dealer to maintain its supervision system.