The Securities and Exchange Commission has already taken a step forward by creating a life settlements task force that will not only consider how federal securities laws apply to life settlements, but also the emerging role of securitization, concentrating on investors, intermediaries and sales practices. That task force will work with the Financial Industry Regulatory Authority Inc., Paula Dubberly, associate director of the SEC’s division of corporation finance said in her testimony.
The SEC has already brought enforcement cases against life settlement sales as investment opportunities, including cases in which the settlement providers made misrepresentations of the underlying policies, she said.
“In the event that possible securities law violations are present in sales of securities through life settlement securitizations, we stand ready to pursue those cases vigorously,” Ms. Dubberly said.
Source: InvestmentNews.com
