SEC announced that it is extending the comment period on the regulation amending rules and forms to help investors make informed investment decisions regarding variable annuity and variable life insurance contracts. The comment period has been extended by one month, from February 15, 2019 to March 15, 2019. The proposed rule was published in the Federal Register on November 30, 2018. The proposal would modernize disclosures by using a layered disclosure approach designed to provide investors with key information on the terms, benefits, and risks of a contract in a concise and more reader-friendly presentation, with access to more detailed information available online and electronically or in paper format on request.
The amendments are intended to help investors make informed investment decisions about variable annuity and variable life insurance contracts. The proposed rule would permit a person to satisfy its prospectus delivery obligations under the Securities Act of 1933 for a variable annuity or variable life insurance contract by sending or giving a summary prospectus to investors and making the statutory prospectus available online. The proposed rule would consider a person to have met its prospectus delivery obligations for any portfolio companies associated with a variable annuity or variable life insurance contract if the portfolio company prospectuses are posted online. In addition, SEC proposed amendments to the registration forms for variable annuity and variable life insurance contracts to update and enhance the disclosures to investors in these contracts and to implement the proposed summary prospectus framework.
SEC proposed to require variable contracts to use the Inline eXtensible Business Reporting Language (Inline XBRL) format for the submission of certain required disclosures in the variable contract statutory prospectus. The proposal includes certain technical and conforming amendments to the rules and forms, including amendments to rules related to variable life insurance contracts as well as rescission of certain related rules and forms. Finally, SEC seeks comments on parallel amendments to the rules governing mutual fund summary prospectuses and registration forms applicable to other types of registered investment companies.
Comment Due Date: March 15, 2019
Keywords: Americas, US, Insurance, Variable Annuity, Variable Life Insurance Contracts, Disclosures, Summary Prospectus, SEC
Previous ArticleOCC Consults on Information Collection on Home Mortgage Disclosure
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.