Since the SEC reopened the comment period on its target date fund proposal in April, the commission has received 29 comment letters generally favoring appropriately tailored enhanced disclosure requirements for TDF marketing materials, SEC Chairwoman Mary Jo White said July 10.
A number of commenters, White said, “expressed concerns that standardized risk measures could potentially confuse or mislead investors, while others supported the proposal, citing the potential usefulness of a standardized risk measure.” White’s comments came in her opening remarks to the SEC’s Investor Advisory Committee during which she provided an update on SEC staff’s progress on the committee’s previous recommendations, including a possible SEC rule imposing a fiduciary mandate on brokers.
Earlier this year the committee recommended that the SEC develop a TDF glide path illustration based on a standardized measure of fund risk as a replacement for, or supplement to, the SEC's proposed asset allocation glide path illustration.
Over at the DOL, the comment period on that agency’s proposal to amend disclosures and require a TDF glide path illustration ended early this month. NAPA provided comments letters to both the SEC (click here) and the DOL (click here).
