The Securities and Exchange Commission (SEC) declined a request by the National Association of Securities Dealers (NASD) for accelerated approval of a controversial proposal to apply the NASD's non-cash compensation rules to group variable annuities. The SEC's actions came in response to objections by the American Council of Life Insurers and the National Association of Insurance and Financial Advisors that the proposal is too controversial to warrant accelerated approval. Although group annuities are exempted securities, the NASD is seeking to assert jurisdiction based on the Government Securities Act Amendments. The NASD's non-cash compensation rules impose a variety of record-keeping and other requirements on members. The NASD also requires that non-cash arrangements be based on the total production of associated persons with respect to all variable products distributed by a member; the credit for each variable contract be equally weighed; and no unaffiliated non-member can participate in a members permissible non-cash sales incentive program.