Which two entities are responsible for regulating variable annuities?

Variable annuities are investment products that combine features of insurance and securities, making them subject to regulation by multiple entities. The correct answer identifies the Department of Financial Services and the Securities and Exchange Commission as the two regulatory bodies responsible for monitoring variable annuities.

The Department of Financial Services oversees the insurance industry within Florida, including the regulation of insurance products such as variable annuities. This department ensures that the products comply with state laws regarding consumer protection, market conduct, and solvency, among other aspects.

On the other hand, the Securities and Exchange Commission (SEC) regulates the securities aspect of variable annuities. Since variable annuities often involve investment components linked to securities markets, the SEC’s role is to oversee the offerings, ensuring that they comply with federal securities laws, thus providing regulatory oversight aimed at protecting investors.

By working together, these two entities help ensure that variable annuities are sold appropriately and transparently, balancing the principles of both the insurance and securities industries.

In contrast, the other choices propose entities that do not directly oversee the regulation of variable annuities in the context required by the question.