WASHINGTON, D.C. - During her first address to the Insured Retirement Institute's (IRI) Government, Regulatory and Legal Conference (GLRC), new SEC Investment Management Division Director Eileen Rominger expressed her belief that a summary prospectus for variable annuities "has great potential for the variable insurance industry."

She first cited the success of summary prospectuses in the mutual fund industry, noting 70% of mutual funds have opted to file summary prospectuses. She then shared that "the summary prospectus option provides for a concise and user-friendly, plain English document for fund investors containing key information about the fund's investment objectives and strategies, risks, costs, and performance," noting "[m]ore detailed information is available both in paper form and also online..."

Consistent with Chairman Schapiro's previous public comments, Director Rominger continued by stating:

"[W]e are studying the feasibility of a summary prospectus for variable annuities that would provide investors with key information in a clear and concise format.

While [certain] factors make our task of developing more user-friendly disclosure for variable annuity investors very challenging, they also make the task all the more important. I believe it is essential that investors be provided with clear disclosure and have ready access to the information they need to make well-informed investment decisions because of the central role that variable products play in the financial plans of so many investors, especially those who are in or approaching their retirement years. "

She noted the "valuable input from the IRI," and expressed her appreciation for "the industry's active involvement and willingness to help the staff work through the challenging issues raised by this initiative and encouraged [IRI's] continued involvement as [SEC staff] continue[s] to study improved disclosure in the variable annuity context."

To read Director Rominger's complete remarks, please click here.

"For two and a half years, IRI has been working closely with the SEC to conceptualize and deliver a VA summary prospectus that will help consumers make informed investment decisions," said IRI President and CEO Cathy Weatherford. "We thank Director Rominger for her supportive comments and look forward to continuing to work with the SEC as they conduct independent analysis on IRI's proof of concept document as we strive to bring the VA summary prospectus to the marketplace on behalf of the hundreds of thousands of consumers who rely on insured retirement strategies to help secure their financial future."

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization and is the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. 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 to advocate before public policy makers on critical issues affecting insured retirement strategies. Visit www.IRIonline.org to experience the new, vast resources of the new Insured Retirement Institute for yourself.

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