Freeing variable annuities from information overload
Source: Investment News
Excerpt: Investment product-marketing materials inevitably come with the warning: Read the prospectus carefully before investing. But do investors really read them? Not many. Do those who read them understand them? Hardly.
This reality has gotten regulator attention — at least when it comes to mutual funds. In 2009, the Securities and Exchange Commission adopted a final rule requiring funds to include key information in plain English in a standard fashion at the beginning of prospectuses. It also allowed mutual funds to use the key information as a standalone summary prospectus, with the traditional version still available for those hardy investors who just can't get enough details about what they're buying.
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