Current through Register Vol. 41, No. 3, September 23, 2024
An insurer shall not enter into a contract under which any
person undertakes, for a fee, to regularly furnish investment advice to such
insurer with respect to its separate accounts maintained for variable life
insurance policies unless:
1. The
person providing such advice is registered as an investment advisor under the
Investment Advisers Act of 1940 ( 15 USC § 80a-1 et seq.); or
2. The person providing such advice is an
investment manager under the Employee Retirement Income Security Act of 1974 (
29 USC § 1001 et seq.) with respect to the assets of each employee benefit
plan allocated to the separate account; or
3. The insurer has filed with the Commission
and continues to file annually the following information and statements
concerning the proposed advisor;
a. The name
and form of organization, state of organization, and its principal place of
business;
b. The names and
addresses of its partners, officers, directors, and persons performing similar
functions, or if such an investment advisor be an individual, of such
individual;
c. A written Standard
of Conduct complying in substance with the requirements of
14VAC5-80-270 of this Article
which has been adopted by the investment advisor and is applicable to the
investment advisor, its officers, directors, and affiliates;
d. A statement provided by the proposed
advisor as to whether the advisor or any person associated therewith;
(1) Has been convicted within 10 years of any
felony or misdemeanor arising out of such person's conduct as an employee,
salesman, officer or director or an insurance company, a banker, an insurance
agent, a securities broker, or an investment advisor involving embezzlement,
fraudulent conversion, or misappropriation of funds or securities, or involving
the violation of Sections 1341, 1342, or 1343 of Title 18 of United States
Code;
(2) Has been permanently or
temporarily enjoined by order, judgment, or decree of any court of competent
jurisdiction from acting as an investment advisor, underwriter, broker, or
dealer, or as an affiliated person or as an employee of any investment company,
bank, or insurance company, or from engaging in or continuing any conduct or
practice in connection with any such activity;
(3) has been found by federal or state
regulatory authorities to have willfully violated or have acknowledged willful
violation of any provision of federal or state securities laws or state
insurance laws or of any rule or regulation under any such laws; or
(4) has been censured, denied an investment
advisor registration, had a registration as an investment advisor revoked or
suspended, or has been barred or suspended from being associated with an
investment advisor by order of federal or state regulatory authorities;
and
e. Such investment
advisory contract shall be in writing and provide that it may be terminated by
the insurer without penalty to the insurer or the separate account upon no more
than 60 days' written notice to the investment advisor.
The Commission may, after notice and opportunity for
hearing, by order require such investment advisory contract to be terminated if
it deems continued operation thereunder to be hazardous to the public or the
insurer's policyholders.
§§ 12.1-13 and 38.2-3313 of the Code of
Virginia.
