The US Securities and Exchange Commission is considering making its variable annuity prospectus more investor-friendly as regulators step up fines related to sale of the complicated investment products.
Dalia Blass, head of the SEC’s investment-management division, said staff may recommend a rule to make the costs and risks of these hybrid securities and insurance investments more understandable.
“Variable insurance products are generally more complex than other retail investment products like mutual funds,” she told a House Financial Services subcommittee last week. “The division is considering a recommendation that the commission propose rules designed to provide investors with more user-friendly, layered disclosure.”
SEC weighs making variable-annuity prospectus more investor-friendly, Blass says
1 October 2018 8:19pm