Stay current on changes and developments in corporate law with a wide variety of resources and tools.
The SEC has adopted a rule that will give mutual funds the option to send electronic copies of annual reports to investors.
Shareholders will be able to access reports online and be notified as they become available. The rule requires funds to continue administering paper reports until 2021 and give investors two years’ notice of the change. Investors will have the option to continue to receive paper reports.
“The new rule significantly modernizes delivery options for fund information while preserving the right of fund investors to receive information in paper form as they do today,” Securities and Exchange Commission Chairman Jay Clayton said.
SEC Commissioner Kara Stein, a Democrat, called the rule a potential hurdle for investors and recommended it be adopted as a pilot program subject to modification based on investors’ delivery preferences.
“In some ways, it disregards the goals of the Commission’s past disclosure effectiveness initiatives by potentially making it more difficult for investors to receive the information they need,” Stein said.
The Investment Company Institute, an association that represents regulated funds, praised the optional transition from paper to electronic statements.
“Once implemented, this new rule will create substantial savings, for the benefit of fund shareholders,” ICI President and CEO Paul Schott Stevens said in a statement.
The shift from a paper-default is part of an effort by the Division of Investment Management to explore different ways to deliver fund disclosures.
The SEC has asked for public feedback on shareholder report delivery processing fees.
To contact the reporter on this story: Alexandra Semenova at email@example.com
To contact the editor responsible for this story: Michael Ferullo at firstname.lastname@example.org
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)