Voya 2013 Annual Report Download - page 61

In this regard, from time to time, federal measures are proposed which may significantly affect the insurance
business, including measures that would limit antitrust immunity, change the tax treatment of insurance products
relative to other financial products, simplify tax-advantaged or tax-exempt savings and retirement vehicles,
restructure the corporate income tax provisions, or modify or eliminate the estate tax as well as proposals related
to an optional federal charter for insurance companies. In addition, various forms of direct federal regulation of
insurance have been proposed in recent years.
Regulation of Investment and Retirement Products and Services
Our investment, asset management and retirement products and services are subject to federal and state tax,
securities, fiduciary (including the Employment Retirement Income Security Act (“ERISA”)), insurance and
other laws and regulations. The SEC, the Financial Industry Regulatory Authority (“FINRA”), the U.S.
Commodities Futures Trading Commission (“CFTC”), state securities commissions, state banking and insurance
departments and the Department of Labor (“DOL”) and the Treasury Department are the principal regulators that
regulate these products and services. The Dodd-Frank Act may also impact our investment, asset management,
retirement and securities operations. See “—Financial Reform Legislation and Initiatives—Dodd-Frank Wall
Street Reform and Consumer Protection Act” below.
Federal and state securities laws and regulations are primarily intended to protect investors in the securities
markets and generally grant regulatory agencies broad enforcement and rulemaking powers, including the power
to limit or restrict the conduct of business in the event of non-compliance with such laws and regulations. Federal
and state securities regulatory authorities and FINRA from time to time make inquiries and conduct examinations
regarding compliance by us and our subsidiaries with securities and other laws and regulations.
Securities Regulation with Respect to Certain Insurance and Investment Products and Services
Our variable life insurance, variable annuity and mutual fund products are generally “securities” within the
meaning of, and registered under, the federal securities laws, and are subject to regulation by the SEC and
FINRA. Our mutual funds, and in certain states our variable life insurance and variable annuity products, are also
“securities” within the meaning of state securities laws. As securities, these products are subject to filing and
certain other requirements. Sales activities with respect to these products are generally subject to state securities
regulation, which may affect investment advice, sales and related activities for these products.
Some of our subsidiaries issue certain fixed and indexed annuities supported by the company’s general
account and/or variable annuity contracts and variable life insurance policies through the company’s separate
accounts. These subsidiaries and their activities in offering and selling variable insurance and annuity products
are subject to extensive regulation under the federal securities laws administered by the SEC. Some of our
separate accounts, as well as mutual funds that we sponsor, are registered as investment companies under the
Investment Company Act, and the units or shares, as applicable, of certain of these investment companies are
qualified for sale in some or all states, the District of Columbia and Puerto Rico. Each registered separate account
is generally divided into sub-accounts, each of which invests in an underlying mutual fund, which is itself a
registered investment company under the Investment Company Act. In addition, the variable annuity contracts
and variable life insurance policies issued by the separate accounts and certain fixed and indexed annuities
supported by some of our subsidiaries’ general accounts, as well as mutual funds we sponsor, are registered with
the SEC under the Securities Act. Certain variable contract separate accounts sponsored by our subsidiaries are
exempt from registration, but may be subject to other provisions of the federal securities laws.
Broker-Dealers and Investment Advisers
Our securities operations, principally conducted by a number of SEC-registered broker-dealers, are subject
to federal and state securities, commodities and related laws, and are regulated principally by the SEC, the CFTC,
state securities authorities, FINRA, the Municipal Securities Rulemaking Board and similar authorities. Agents
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