AmazonScience/document-haystack

1• FINRA Standard of Care Development – In 2020, FINRA Rule 2111 was amended to provide that FINRA’s suitability requirements 2do not apply to recommendations that are subject to Regulation BI. This amendment was intended to mitigate any potential 3confusion regarding which standard of conduct applies to retail consumers. FINRA’s suitability rules still apply to recommendations 4that are not covered by Regulation BI, such as recommendations to institutional customers.5• New York Standard of Care Developments – In July 2018, NYDFS adopted a best interest standard of care regulation applicable to 6annuity and life insurance transactions through issuance of the First Amendment to Insurance Regulation 187 – Suitability and 7Best Interests in Life Insurance and Annuity Transactions (Regulation 187). As amended, Regulation 187 requires life and annuity 8producers to act in their client’s best interest when making point-of-sale and in-force recommendations, and to deliver to the client 9the written basis for the recommendation, as well as the facts and analysis to support the recommendation. The amended 10regulation also imposes additional duties on life insurance companies in relation to these transactions, such as requiring insurers 11to establish and maintain procedures designed to prevent financial exploitation and abuse. The amended Regulation 187 was 12previously challenged in court, but was upheld by the State of New York Court of Appeals, which is New York’s highest state court, 13in October 2022. 14• State Standard of Care Developments (Other than New York) – In February 2020, the NAIC adopted revisions to its Suitability in 15Annuity Transactions Model Regulation (#275) (NAIC Suitability Model) implementing a best interest standard of care applicable to 16sales and recommendations of annuities. The amended NAIC Suitability Model conforms in large part to Regulation BI, providing 17that all recommendations by agents and insurers must be in the best interest of the consumer under known circumstances at the 18time an annuity recommendation is made, without placing agents’ or insurers’ financial interests ahead of the consumer’s interest 19in making a recommendation. A majority of states have adopted amendments to their suitability rules based on the NAIC Suitability 20Model revisions, and we expect that a substantial majority of states will do so or consider adopting their own standards of conduct 21which could be broader than the NAIC Suitability Model. 22We continue to closely follow these legislative and regulatory activities as changes in standard of care requirements and have 23evaluated the impact of these requirements on us and our customers, distribution partners and financial advisers. We have made 24significant investments to implement and enhance tools, processes and procedures, where needed, to comply with the final rules and 25interpretations. These efforts and enhancements have resulted in increased compliance costs and may impact sales results and 26increase regulatory and litigation risk.27FEDERAL RETIREMENT LEGISLATION28In December 2022, comprehensive retirement legislation entitled "SECURE 2.0 Act of 2022" (SECURE 2.0) was signed into law. 29SECURE 2.0 included many provisions affecting qualified contracts, many of which became effective in 2023, and additional ones that 30become effective in 2024 or subsequent years. Some of the SECURE 2.0 provisions that became effective in 2023 include, among 31others: an increase in the age at which required minimum distributions generally must commence to age 73 from the previous age of 3272; elimination of the first day of the month requirement for governmental Section 457(b) plans; and optional treatment of employer 33contributions as Roth sources. We are implementing new processes and procedures, where needed, designed to comply with the new 34requirements. 35Available Information about AIG36Our corporate website is www.aig.com. We make available free of charge, through the Investors section of our corporate website, the 37reports that we file or furnish with the SEC (including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current 38Reports on Form 8-K, Proxy Statements on Schedule 14A, any amendments to each of those reports and filings, and other 39disclosure), corporate governance information (including our Code of Business Conduct and Ethics and any amendments of or 40waivers from the Code of Business Conduct and Ethics), and select press releases. Additionally, all of our reports filed with the SEC 41are available on the SEC's website at sec.gov. 42Except for the documents specifically incorporated by reference into this Annual Report on Form 10-K, information contained on our 43website or that can be accessed through our website is not incorporated by reference into this Annual Report on Form 10-K. 44Reference to our website is made as an inactive textual reference.45ITEM 1 | Business4614 AIG | 2023 Form 10-K