The Securities and Exchange Commission said Thursday that it is extending by one month the comment period for its proposed rulemaking on a variable annuity summary prospectus.
The original comment period expired Friday but has been extended to March 15.
The plan, which amends the rules and forms to help investors make informed investment decisions regarding variable annuity and variable life insurance contracts, was published in the Federal Register on Nov. 30, 2018.
Dalia Blass, director of the SEC’s Investment Management Division, said in November that the VA summary prospectus proposal, which the securities regulator voted to issue for public comment on Oct. 31, is intended to reform the disclosure framework for variable contracts.
“What started out as a process to propose a summary prospectus became so much more,” Blass said then. The proposal offers layered disclosure to insurance products, updates registration forms, takes a fresh look at addressing discontinued contracts and leverages technology, she explained.
Blass said a “core feature” of the proposal is the layered disclosure framework. “It would permit issuers to provide investors with a summary prospectus for the variable contracts while making the full prospectus and related materials available online,” she explained.