IRI Encouraged By SEC Director’s Remarks On VA Prospectus
WASHINGTON, D.C.– The Insured Retirement Institute (IRI) released the following statement from IRI President and CEO Cathy Weatherford regarding remarks delivered by Norm Champ, Director, Division of Investment Management at the U.S. Securities and Exchange Commission (SEC). Director Champ’s remarks were delivered last week during the American Law Institute’s Conference on Life Insurance Company Products.
“We are encouraged by Director Champ’s remarks and agree with his optimism that a variable annuity summary prospective would benefit investors by providing better information. There remains a strong demand by investors for clear and concise variable annuity information. IRI research shows that 95 percent of investors prefer a shorter paper summary prospectus. As it stands today, the length of the full prospectus—in and of itself—is a barrier to investor education and informed decision making. Only 17 percent of investors reported reading any part of the full prospectus in 2012. And even among those that have, they are only reading a small fraction of the full prospectus, which often times can be between 150 to 300 pages long. The research is clear that now is the time for a summary prospectus to facilitate more informed decision making. That is why IRI remains committed and resolved to work with the SEC to ensure that relevant, clear and concise information, via a variable annuity summary prospectus, is made available to investors.”
Click here to access Director Champ’s remarks.
About the Insured Retirement Institute:The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry. Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI proudly leads a national consumer education coalition of nearly twenty organizations and is the only association that represents the entire supply chain of insured retirement strategies: Our members are the major insurers, asset managers, broker dealers, and more than 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI’s mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and advocate before public policy makers on critical issues affecting insured retirement strategies and the consumers that rely on their guarantees. Visit www.IRIonline.org today to experience the vast resources of the Insured Retirement Institute for yourself.