New SEC Proposal
Overload, Says ACLI
What Your Peers Are Reading
Variable product consumers could face information overload under a new Securities and Exchange Commission proposal requiring additional disclosure of fees and charges, the American Council of Life Insurers says.
Carl Wilkerson, vice president and chief counsel with ACLI, says the SEC already has completed a constructive endeavor with its recent simplification of the variable product prospectus.
The new prospectus, he says, establishes streamlined disclosure of fees and charges in plain English and a user-friendly format. Indeed, he notes, fees and charges relating to variable products are presented in a tabular format on the second page.
The new proposal, he says, risks undoing the benefits of the simplified prospectus by requiring broker-dealers to provide consumers with redundant information that could hamper their ability to make informed purchasing decisions.