On July 21, 2009 the U.S. Court of Appeals’ sent Rule 151A back to the SEC for further analysis on how the Rule will impact competition and the sufficiency of investor protections under existing state regulations. Following the Court’s remand, Old Mutual filed a petition requesting the Court stay or halt the effective date of Rule 151A until two years after the SEC has completed the appropriate analysis.

On November 6, 2009 the Court ordered additional briefing on the question of what the appropriate remedy for Rule 151A is in light of the SEC’s failure to conduct the appropriate analysis. In its briefing, Old Mutual argued that the appropriate remedy should be vacatur, meaning that the rule would be null and void. Alternatively, Old Mutual requested the Court require a two-year stay if the Court did not set aside the Rule.

On December 8, 2009, the SEC filed its supplemental brief in response to the Court’s order regarding the appropriate remedy for Rule 151A. In its brief, the SEC made the following arguments and statements:

• The SEC argued that the Rule should not be null and void and said that they would perform the analysis requested by the Court
• The SEC is already working to address the defect in the Rule and is expected to complete its analysis of the Rule’s impact on efficiency, competition and capital formation by the Spring of 2010
• If the SEC retains Rule 151A, it expects to seek public notice and comment on its analysis
• The SEC consents to delay the effective date of Rule 151A for two years after completion of all proceedings on remand from the court

General consensus is this is a favorable development since the SEC has formally consented to the elimination of the January 2011 effective date. In addition, the SEC has also consented to the delay of the effective date of Rule 151A for two-years after the completion of the analysis required by the Court, including any comment period. We've made it easy as 1, 2, 3. . . what we call the TRIPLE DIP.

1 - Fax, 2 - Call, 3 - Visit

• FAX your letters supporting our legislation to your Representatives and Senators. Everything you need -including fax numbers and sample letters - are on this website at www.sec151a.com
• CALL the Washington offices of your Representatives and Senators to tell them about your letter. Again - we've made it easy - phone numbers and talking points are on our website at www.sec151a.com
• VISIT the local office of your Representatives and Senators!

Make it fun -go with colleagues and associates - take a copy of your letter with you and drop it off at their office. If you've already been doing these things, keep up the great work by contacting your Representatives and Senators again on November 10 -and try to get other agents and colleagues to join you. If you haven't already tripled-dipped, this is the time to get involved! This is our chance to make our voices heard in Washington!

Click Here to view sample letter you can send

Click here for a list of your Representatives and Senators