The Securities and Exchange Commission voted on Wednesday to propose rule changes intended to improve disclosure for investors in variable annuities and variable life insurance contracts. These contracts contain complex features, fees, and risks, that would benefit from more detailed disclosure that would help investors make informed investment decisions, the SEC’s press release says. The proposal permits the use of a concise, reader friendly summary prospectus, similar to mutual funds, that summarizes of key facts about the contract. The proposal also suggest more detailed information about the contract to be available online, or the choice of having that information delivered in paper or electronic format at no charge. The public can comment on the proposed rule changes, as well as on hypothetical summary prospectus samples through February 15, 2019.
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