SEC adopts new rules on var. annuity fee tables. (Securities and Exchange Commission)

National Underwriter Life & Health-Financial Services Edition, February, 1989 by Brostoff, Steven

SEC Adopts New Rules On Var. Annuity Fee Tables

Washington--The Securities and Exchange Commission has adopted a regulation requiring variable annuity underwriters to include a consolidated fee table near the front of prospectuses.

Effective May 1, 1989, prospectuses must contain a table showing transaction expenses paid directly by the shareholder, such as sales loads; annual contract fees deducted from shareholder assets; and annual expenses deducted from variable annuity separate account assets, such as management fees.

In addition, the fee table must provide an example of the cumulative amount of these fees over various investment periods.

The regulation includes numerous changes from the original proposal (See NU, Oct. 3, 1988,...

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