Feds want to get their hands on life settlements, observers say

SEC signals plans on uniform solutions for disclosures, licensing

As states propose and pass rules for oversight of life settlement transactions, industry participants wonder just how far the Securities and Exchange Commission will reach into the market to provide uniform guidance on disclosure and broker registration.

“I can think of 12 to 15 cases in the last 12 months in which investors lost hundreds of millions of dollars on these transactions,” said Larry Rybka, president of ValMark Securities Inc. in Akron, Ohio. “The SEC definitely needs to be more involved in that area...”

Investment News: Feds want to get their hands on life settlements, observers say