SEC tightening variable sale rules
September 24, 2007
Federal and local financial regulators are moving to rein in abusive sales of so-called variable annuities, retirement savings products with payments that fluctuate according to the value of an underlying investment.The Securities and Exchange Commission has approved rules requiring sellers to give customers documentation of charges and fees. Sellers would also have to tell clients that variable annuities are intended for long-term investors.
Annuities often defer payments for a number of years, and include financial penalties for early withdrawals.
Sun-Times wires