U.S. Chamber to SEC: Let Mutual Funds E-Disclose!

US ChamberThe U.S. Chamber of Commerce isn’t happy about reports that the SEC may abandon a proposed rule that would allow mutual funds to deliver shareholder reports via the internet.

“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,” Tom Quaddman, executive vice president of the Chamber’s Center for Capital Markets Competitiveness wrote in a Sept. 6 letter to SEC Chairman Mary Jo White. “Backing away from the Proposed Rule, which would further support the ability of investors to choose between paper-based or electronic delivery of shareholder reports, is a major step backwards.”

Proposed Rule 30e-3 would permit mutual funds to make their shareholder reports accessible via their websites, but still allow shareholders to receive paper reports, should they prefer to do so.

The proposed e-delivery of shareholder reports was part of a larger proposed rulemaking that was issued for comment in May 2015. According to the SEC, the proposed rules would “modernize and enhance the reporting and disclosure of information by investment companies and investment advisers.”

You can read more about the U.S. Chamber’s stance in this story.