SEC Issues Final Rule to Improve Disclosure Requirements for Variable Annuities and Variable Life Insurance Contracts

The SEC has issued a final rule, Updated Disclosure Requirements and Summary Prospectus for Variable Annuity and Variable Life Insurance Contracts.

The final rule “permits a person to satisfy its prospectus delivery obligations under the Securities Act for a variable contract by providing a summary prospectus to investors and making the statutory prospectus available online.” Further, “[t]he new summary prospectus framework leverages both technology and a layered disclosure approach to improve the ability of investors to understand and evaluate variable contracts.”

In addition, the SEC has adopted amendments to registration forms and related rules to implement the updated disclosure requirements.

For more information, see the press release on the SEC’s Web site.