Voya 2013 Annual Report Download - page 103

constitute legitimate risk transfer. FIO has an ongoing charge to monitor all aspects of the insurance
industry and will monitor state regulatory developments, including those called for in its report and
present options for federal involvement if deemed necessary.
• Under the Dodd-Frank Act, various federal regulators have adopted the Volcker Rule, which places
limitations and restrictions on the ability of certain deposit institutions and regulated banking entities,
as well as their affiliates, to engage in certain proprietary trading or sponsor and invest in private funds.
In the event that one of our affiliates becomes a depository institution or otherwise becomes subject to
the Volcker Rule, our investment activities could be restricted.
• The Dodd-Frank Act also includes various securities law reforms that may affect our business
practices. See “—Changes in U.S. federal and state securities laws and regulations may affect our
operations and our profitability” below.
Although the full impact of the Dodd-Frank Act cannot be determined until the various studies mandated by
the law are conducted and implementing regulations are adopted, many of the legislation’s requirements could
have profound and/or adverse consequences for the financial services industry, including for us. The Dodd-Frank
Act could make it more expensive for us to conduct business, require us to make changes to our business model
or satisfy increased capital requirements, subject us to greater regulatory scrutiny or to potential increases in
whistleblower claims in light of the increased awards available to whistleblowers under the Act and have a
material adverse effect on our results of operations or financial condition.
See “Item 1. Business—Regulation” for further discussion of the impact of the Dodd-Frank Act on our
businesses.
In addition to the Dodd-Frank Act, regulators and lawmakers in non-U.S. jurisdictions are engaged in
addressing the causes of the recent financial crisis and means of avoiding such crises in the future. Although
currently we are not directly subject to non-U.S. regulation, we may be significantly affected by foreign
regulatory actions, due to our being under the control of ING Group. We are unable to predict how any such
regulations could affect the way ING Group conducts its business and manages capital, or to what extent any
resulting changes in the way ING Group conducts its business or manages capital could affect our business, our
relationship with ING Group or our results of operations, financial condition and liquidity. For a further
discussion of foreign regulation and its potential effect on us while we are controlled by ING Group, including
the impact of the Solvency II Directive, see “Item 1. Business—Regulation—International and National
Regulatory Initiatives that May Affect Us as a Consequence of our Affiliation with ING Group”.
Changes in U.S. federal and state securities laws and regulations may affect our operations and our
profitability.
U.S. federal and state securities laws apply to sales of our mutual funds and to our variable annuity and
variable life insurance products (which are considered to be both insurance products and securities) as well as to
sales of third-party investment products. As a result, some of our subsidiaries and the products they offer are
subject to regulation under these federal and state securities laws. Our insurance subsidiaries’ separate accounts
are registered as investment companies under the Investment Company Act. Some variable annuity contracts and
variable life insurance policies issued by our insurance subsidiaries also are registered under the Securities Act.
Other subsidiaries are registered as broker-dealers under the Exchange Act, are members of, and subject to,
regulation by FINRA, and are also registered as broker-dealers in various states, as applicable. In addition, some
of our subsidiaries are registered as investment advisers under the Investment Advisers Act.
Securities laws and regulations are primarily intended to ensure the integrity of the financial markets and to
protect investors in the securities markets or investment advisory or brokerage clients. These laws and
regulations generally grant supervisory agencies broad administrative powers, including the power to limit or
restrict the conduct of business for failure to comply with those laws and regulations. A number of changes have
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