SEC Issues Final Rule to Improve Disclosure Requirements for Variable Annuities and Variable Life Insurance Contracts
SEC Issues Final Rule to Improve Disclosure Requirements for Variable
Annuities and Variable Life Insurance Contracts
March 12, 2020
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
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.