SEC Adopts Rule to Simplify Variable Annuity Disclosures

March 18, 2020 by John Manganaro

The U.S. Securities and Exchange Commission (SEC) has adopted a new rule and related regulatory amendments to simplify and streamline disclosures for investors about variable annuities and variable life insurance contracts.

SEC Chairman Jay Clayton says the changes permit the use of “a concise, reader-friendly prospectus designed to improve investors’ understanding of the contracts’ features, fees and risks.” He says the new framework’s use of “layered disclosure and technology” will provide investors with a roadmap so they can more easily access the information they need to make an informed investment decision.

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Originally Posted at PLANSPONSOR on March 13, 2020 by John Manganaro.