Consumers say they would be more likely to read condensed versions of investment prospectuses than they are to read the actual prospectuses.
The Insured Retirement Institute, Washington, has published statistics supporting that conclusion in a summary of results from a recent survey of 961 U.S. retirees and near-retirees with at least $100,000 in investable assets.
The IRI commissioned the survey in connection with its efforts to persuade the U.S. Securities and Exchange Commission to permit variable annuity issuers to use summary prospectuses.
About 86% of the participants said they would prefer to get a summary prospectus rather than the entire prospectus, as long as the complete version was online or available upon request, and 89% said they would be more likely to read the summary version, the IRI says.
About 56% of the participants said they sometimes or always look at prospectuses, but only 21% said they always do.