The American Council of Life Insurers, Washington, wants federal regulators to keep communication between broker-dealers and customers as simple as possible.[@@]
The ACLI is one of many groups that have submitted comments on a proposal by the U.S. Securities and Exchange Commission that would require broker-dealers to give customers who buy mutual funds, variable insurance products, 529 college savings plans and other products more information at the “point of sale.”
Carl Wilkerson, an ACLI vice president, has submitted a comment arguing that the SEC proposal could undermine disclosure requirements that were implemented in 2004.
The proposal is well intentioned, but “more disclosure is not better disclosure,” Wilkerson writes in the ACLI comment.
Under the SEC proposal, broker-dealers would be required to provide customers with information regarding costs and any conflicts of interest during the sale of affected financial products.