Monday, November 5, 2018

SEC Proposes Disclosure Improvements for Variable ...

There have always been issues, and arbitrations regarding the disclosures made to investors when selling variable annuities. The SEC has announced that it has voted to propose rule changes designed to improve those disclosures.

The proposal is intended to help investors better understand these contracts' features, fees, and risks, and to more easily find the information that they need to make an informed investment decision.
"This proposal is another important step in the Commission's efforts to provide Main Street investors with better information to make informed investment decisions. I have participated in many roundtables with retail investors over the last several months, and investors have emphasized their preference for clear and concise disclosure," said SEC Chairman Jay Clayton. "Providing key summary information about variable annuities and variable life insurance contracts to investors is particularly important in light of the long‑term nature of these contracts and their potential complexity."
Securities Lawyer Blog: SEC Proposes Disclosure Improvements for Variable ...

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