As a result of those concerns, FINRA initiated a special variable annuity sales rule — Rule 2821 Governing Purchases and Exchanges of Deferred Variable Annuities. Approved by the Securities and Exchange Commission in September 2007 and became effective in May 2008, the rule requires financial service companies to implement supervisory procedures to "detect and prevent inappropriate exchanges" of variable annuities. In fact, variable annuities are among the few securities products that have their own custom suitability requirements, along with the trading of warrants, futures, options and direct participation programs.
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