The Securities and Exchange Commission said Wednesday that it has adopted its long-awaited variable annuity summary prospectus rule.
The new 713-page rule and amendments are designed to simplify and streamline disclosures for investors about variable annuities and variable life insurance contracts.
“The Commission is taking this important step to improve Main Street investors’ understanding of these products,” said SEC Chairman Jay Clayton, in a statement. “With today’s technology and the benefits of layered disclosure, investors should not have to work through hundreds of pages of disclosure to understand these products’ risks, fees, and features in order to make informed investment decisions.”
Dalia Blass, director of the SEC’s Division of Investment Management, said in November that the VA summary prospectus rule would likely be released by April.