Critics say plan to treat all life settlements as securities will shrink the industry – or worse; others say it’s not so
By Darla Mercado
On Thursday, a government task force recommended treating life settlements as securities, thus bringing the instruments under tighter regulatory scrutiny.
On Friday, some market participants backed the idea. But others bashed the plan, claiming that such a proposal would place sizable burdens on providers — and offer little added protection for institutional investors.
Commentary by Life Policy Group:
At this stage unfortunately regulation is needed which may ‘kill off’ some of the smaller players in the market, but it may well produce a more settled and professional industry. These developments are all part of the industry growing up and very much echo the experience of the UK secondary market which began its development perhaps ten tears earlier than the US life settlement market.
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Tags: life settlements, securities