Page:United States Statutes at Large Volume 120.djvu/1348

 PUBLIC LAW 109–290—SEPT. 29, 2006

120 STAT. 1317

Public Law 109–290 109th Congress An Act To protect members of the Armed Forces from unscrupulous practices regarding sales of insurance, financial, and investment products.

Sept. 29, 2006 [S. 418]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Military Personnel Financial Services Protection Act’’. (b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec.

Military Personnel Financial Services Protection Act. 10 USC 992 note.

1. 2. 3. 4. 5.

Short title; table of contents. Congressional findings. Definitions. Prohibition on future sales of periodic payment plans. Required disclosures regarding offers or sales of securities on military installations. 6. Method of maintaining broker and dealer registration, disciplinary, and other data. 7. Filing depositories for investment advisers. 8. State insurance and securities jurisdiction on military installations. 9. Required development of military personnel protection standards regarding insurance sales; administrative coordination. 10. Required disclosures regarding life insurance products. 11. Improving life insurance product standards. 12. Required reporting of disciplinary actions. 13. Reporting barred persons selling insurance or securities. 14. Study and reports by Inspector General of the Department of Defense.

SEC. 2. CONGRESSIONAL FINDINGS.

10 USC 992 note.

Congress finds that— (1) members of the Armed Forces perform great sacrifices in protecting our Nation in the War on Terror; (2) the brave men and women in uniform deserve to be offered first-rate financial products in order to provide for their families and to save and invest for retirement; (3) members of the Armed Forces are being offered highcost securities and life insurance products by some financial services companies engaging in abusive and misleading sales practices; (4) one securities product offered to service members, known as the ‘‘mutual fund contractual plan’’, largely disappeared from the civilian market in the 1980s, due to excessive sales charges; (5) with respect to a mutual fund contractual plan, a 50 percent sales commission is assessed against the first year of contributions, despite an average commission on other securities products of less than 6 percent on each sale;

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