Michigan Variable Annuities Practice Test 2026 - Free Variable Annuities Practice Questions and Study Guide

The key point is that the regulation of entities that pool investor money to create investment portfolios falls under the Investment Company Act of 1940. Insurer separate accounts used for variable products function like investment companies because they collect funds from multiple investors and invest in a portfolio of securities through subaccounts. This Act specifically requires those investment companies to register with the SEC, establishing governance, reporting, and other oversight. The other statutes cover different areas: the Securities Act of 1933 regulates the initial sale of securities, the Investment Advisers Act covers persons and firms giving investment advice, and the Securities Exchange Act deals with trading and exchanges. Therefore, the statute that requires insurer separate accounts to be registered as investment companies is the Investment Company Act of 1940.