Chamber of Commerce Lashes SEC on Fund E-Disclosure

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By Rob Tricchinelli

Sept. 6 — The leader of the Chamber of Commerce's capital markets section criticized the Securities and Exchange Commission Sept. 6 over reports that the agency is scuttling plans to permit mutual funds to distribute shareholder reports on the internet.

The Chamber's Center for Capital Markets Competitiveness is “extremely dismayed” that the SEC is moving away from proposed Rule 30e-3 under the 1940 Investment Company Act, it said in a letter to SEC Chairman Mary Jo White. The agency's move was reported by the Wall Street Journal, which CCMC chief Tom Quaadman cited in the letter.

“We believe that the SEC should move away from a 1930’s paper based model and embrace the information delivery systems used by the general public, including investors and the businesses they invest in,” the letter said.

The proposal would have allowed investors to keep receiving paper reports. It was proposed in May 2015 (98 SLD 98, 5/21/15).

“We believe it is high time for the Commission to embrace expanding the electronic delivery of mutual fund shareholder reports,” the letter said.

To contact the reporter on this story: Rob Tricchinelli in Washington at rtricchinelli@bna.com

To contact the editor responsible for this story: Phyllis Diamond at pdiamond@bna.com

For More Information

For the letter, visit http://src.bna.com/ikU

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