39 These restrictions adversely impact the telemarketing efforts  of Aegon USA, and new proposals, if enacted, will likely impact  direct mail efforts. Proposed Federal Reserve Board disclosures  regarding credit insurance provided in connection with a loan,  if enacted as proposed, would adversely impact the market for  credit insurance. Many supplemental health insurance products offered by the  Aegon USA companies, such as Medigap, are subject to both  federal and state regulation as health insurance. The Patient  Protection and Affordable Care Act (PPACA), enacted in 2011,  significantly changes the regulation of health insurance and  delivery of health care in the United States, including in certain  respects, the regulation and delivery of supplemental health  insurance products. Individual states are required to establish  health care exchanges for the purchase of health care insurance by  individuals. The extent to which employers may discontinue their  provision of supplemental health insurance products to retired  employees and the extent to which supplemental health insurance  products may be sold through state exchanges may significantly  impact Aegon USA’s supplemental health products business. Additionally, certain policies and contracts offered by Aegon  USA insurance companies are subject to regulation under the  federal securities laws administered by the SEC and under certain  state securities laws. The SEC conducts regular examinations  of the insurance companies’ variable life insurance and variable  annuity operations, and occasionally makes requests for  information from these insurers in connection with examinations  of affiliate and third party broker-dealers, investment advisors  and investment companies. The SEC and other governmental  regulatory authorities, including state securities administrators,  may institute administrative or judicial proceedings that may  result in censure, fines, issuance of cease-and-desist orders, or  other sanctions against insurance companies or their distributors.  Sales of variable insurance and annuity products are regulated by  the SEC and the FINRA. The SEC, the FINRA and other regulators  have from time to time investigated certain sales practices  involving variable annuities and transactions in which an existing  variable annuity is replaced by, or exchanged for, another annuity.  Certain separate accounts of Aegon USA insurers are registered  as investment companies under the Investment Company Act  of 1940, as amended (the Investment Company Act). Separate  account interests under certain annuity contracts and insurance  policies issued by the insurance companies are also registered  under the Securities Act of 1933, as amended (the Securities  Act). Aegon USA insurance companies and other subsidiaries  also own or manage other investment vehicles that are exempt  from registration under the Securities Act and the Investment  Company Act but may be subject to other requirements of those  laws, such as anti-fraud provisions and the terms of applicable  exemptions. Some of the Aegon USA companies are registered as broker- dealers with the SEC under the Securities Exchange Act of  1934, as amended (the Securities Exchange Act) and are  regulated by the FINRA. A number of Aegon USA companies are  also registered as investment advisors under the Investment  Advisers Act of 1940. In accordance with Dodd-Frank Act  requirements, the SEC studied and recommended a harmonized  standard of care for broker-dealers, investment advisors and  persons associated with these firms who provide personalized  investment advice. The SEC has solicited comments on the  costs and benefits of regulations to establish a harmonized  standard of care; however, it has not set a date for proposal  of those regulations. Legislation has been proposed in prior  congresses that would establish a self-regulatory organization  for the examination of investment advisors; however, no action  was taken on the legislation. Finally, the SEC and Congress are  considering changes to the regulation of money market funds.  The impact of any future legislation regulations regarding  investment advisors, money market funds, or other investment  products cannot be predicted at this time. The financial services industry, which includes businesses  engaged in issuing, administering, and selling fixed and variable  insurance products, mutual funds, and other securities, and  also includes broker-dealers, continues to be under heightened  scrutiny and increased regulation in various jurisdictions. Such  scrutiny and regulations have included matters relating to  so-called producer compensation arrangements, suitability of  sales (especially to seniors), selling practices, unclaimed property  reporting, revenue sharing, and valuation issues involving mutual  funds and life insurance separate accounts and their underlying  funds. Aegon USA companies, like other businesses in the  financial services industry, have received inquiries, examinations,  and requests for information from regulators and others relating  to certain Aegon USA companies’ historical and current practices  with respect to these and other matters. Some of those inquiries  have led to investigations, which remain open or have resulted  in fines, corrective actions or restitution. Aegon USA companies  continue to cooperate with these regulatory agencies. In certain  instances, Aegon USA companies modified business practices  in response to those inquiries or findings. Certain Aegon USA  companies have paid, or been informed that the regulators may  seek, restitution, fines or other monetary penalties or changes in  the way that business is conducted. The impact of any such fines  or other monetary penalties is not expected to have a material  impact on Aegon USA’s financial position, net income or cash  flow. Over the years, there has been an increase in litigation  across the industry, new legislation, regulations, and regulatory  initiatives aimed at curbing alleged improper annuity sales to  seniors. As many of the estimated 78 million baby boomers are  reaching the age of 60, the industry will likely see an increase  in senior issues presented in various legal arenas. In addition,  certain industry practices in respect of market conduct have  been the subject of investigations by various state regulators.  Management expects any significant marketplace volatility to  drive further regulation and litigation, which could increase costs  and limit Aegon USA’s ability to operate.