The American Council of Life Insurers (ACLI) sent a letter on Friday to the Securities Exchange Commission recommending that it take action to prohibit by regulation or recommend to Congress to prohibit by law the securitization of life settlements.
In the letter, the ACLI disagrees with the SEC Task Force recommendation that the Commission instruct the staff to monitor for the development of a life settlement securitization market.
Instead, the ACLI recommends the prohibition of the securitization of life settlements. "The ACLI shares SEC staff concern about the lack of information about settlement securitization activity, especially because securitizations may be attempted in reliance upon exemptions from SEC registration," said the letter.
