Securities and Exchange Commission (SEC) Seeks Public Input on Glide-Path Graphic for Target Date Funds
SEC Chair Mary Jo White indicated in a letter to the Investor Advisory Committee that the SEC would solicit public comments on graphics illustrating target date fund risk. In April 2013, the Investor Advisory Committee recommended that the SEC develop a glide path illustration for target date funds that is based on a standardized measure of fund risk as either a replacement or supplement to its proposed asset allocation glide path illustration. The Investment Advisory Committee also recommended that the SEC adopt a standard methodology to be used in both the risk-based and asset allocation glide path illustrations. SEC staff will develop a draft request for additional comment.
Sources: Letter from Mary Jo White to Joseph Dear, Chairman of the Investor Advisory Committee (November 20, 2013); Joe Morris, SEC Wants Public Input on Glide-Path Graphic, (November 25, 2013); Recommendation of the Investor Advisory Committee (adopted April 11, 2013).