10th Circuit Affirms District Court Analysis of Broker-Dealer Exemption under Advisers Act as Applied to Broker-Dealer Affiliate of Insurance Company Selling Variable Insurance Product (Part 2 of 2).

Mondaq Business Briefing › Nbr. 2011, January 2011

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10th Circuit Affirms District Court Analysis of Broker-Dealer Exemption under Advisers Act as Applied to Broker-Dealer Affiliate of Insurance Company Selling Variable Insurance Product (Part 2 of 2).

10th Circuit Affirms District Court Analysis of Broker-Dealer Exemption under Advisers Act as Applied to Broker-Dealer Affiliate of Insurance Company Selling Variable Insurance Product

The U.S. Court of Appeals for the Tenth Circuit (the "Appeals Court") affirmed a district court decision granting summary judgment to an insurance company and its affiliated broker-dealer (collectively referred to as the "company") that were being sued for alleged violations of the Investment Advisers Act of 1940 (the "Advisers Act") in connection with the sale of a variable universal life insurance policy. (The district court decision was discussed in the September 15, 2009 Alert.) The plaintiffs alleged that a sales representative of the company had acted as an investment adviser in recommending that the plaintiffs purchase the policy, a...

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