The SEC voted unanimously Tuesday to adopt measures to improve the transparency of mutual funds and variable annuities. Beginning Dec. 5, all funds must now disclose what risks, if any market timing, poses for their funds, as well as reveal in their fund prospectus whether their board has adopted rules against market timing. Should a board have decided such rules are not necessary, it must reveal its reasons why.

If a fund or variable annuity allows frequent purchases or sales of its funds, it must describe the details of such arrangements in its statement of additional information.

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