Which regulatory body oversees variable products?

The correct answer is the Securities and Exchange Commission (SEC), which plays a crucial role in overseeing variable products. Variable products, such as variable life insurance and variable annuities, are considered securities due to their investment components. As securities, they fall under the purview of the SEC, which regulates the offers and sales of these products to ensure investor protection and maintain fair and efficient markets.

The SEC requires that these products be registered, and it mandates comprehensive disclosures to potential investors about the risks associated with variable products and their investment performance. This oversight is crucial because it helps ensure that consumers have the necessary information to make informed financial decisions regarding these complex products. The SEC also plays a role in policing fraudulent activities and maintaining the integrity of the financial markets where variable products are sold.

While other regulatory bodies, such as the Department of Labor or the Financial Industry Regulatory Authority (FINRA), have specific functions in the financial sector, they do not specifically oversee variable products. The Department of Labor focuses on regulations affecting retirement plans and employee benefits, while FINRA regulates brokerage firms and exchange markets, ensuring that they operate fairly and honestly, but does not have direct oversight of variable insurance products like the SEC does. The Federal Trade Commission primarily addresses consumer protection issues related