General Securities Representative (Series 7) Practice Exam – Your All-in-One Guide to Exam Success!

The Securities Act of 1933 requires variable annuities to be registered because it was designed to ensure that investors receive significant information about securities being offered for sale. The Act mandates that any security sold in interstate commerce must be registered with the Securities and Exchange Commission (SEC) unless an exemption applies. Variable annuities fall under the definition of securities due to their investment component, which involves a pooled investment vehicle. As such, they must comply with the registration requirements established by this Act to provide transparency and protect investors.

The other options—such as the Securities Act of 1940, the Investment Company Act of 1940, and the Financial Services Modernization Act—do not specifically address the registration of variable annuities in the same way as the 1933 Act. The Investment Company Act, for example, focuses on the regulation of investment companies and their offerings, while the Financial Services Modernization Act primarily concerns the deregulation of financial services and does not pertain directly to the registration of variable annuities.