Individual states are taking a cue from regulators and taking steps toward assembling nationwide guidelines for selling 529 college savings plans, Dow Jones Newswires reports. The states efforts have already produced a draft set of guidelines that has been circulated to state treasurers, the SEC and the House Committee on Financial Services. The proposed guidelines, which are tentatively scheduled for release by December, are intended to replace varying state requirements for selling 529 plans with a contiguous series of rules.
Investor advocates recently testified before a Congressional subcommittee to protest difficulties created by the current patchwork of individual state guidelines. A task group the SEC set up in March to study 529 plans has already called for greater transparency of fees.