Compliance June 7, 2018

SEC Seeks Comments on Fund Disclosures and the Fees Charged for Them

The agency also adopted a new rule allowing fund companies to share information via the Internet.

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The Securities and Exchange Commission (SEC) adopted a new rule, 30e-3, aimed at improving the experience of investors who invest in mutual funds, exchange-traded funds (ETFs) and other investment funds.

The rule permits asset managers to deliver shareholder reports by making them publicly accessible on a free website and sending investors a paper notice of each report’s availability via mail. If an investor prefers to continue receiving shareholder reports by mail, they may do so. The new rule goes into effect January 21, 2021.

The SEC is also asking the public for their thoughts on how the delivery of fund information could be modernized. The Commission is inviting investors, academics, literacy and design experts, market observers and fund advisers and boards of directors to visit www.sec.gov/tell-us to provide feedback on how to improve the experience of fund investors. The aim is to provide more interactive and personalized disclosure.

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Furthermore, the SEC is asking for feedback on the processing fees that broker/dealers and other intermediaries charge investment funds for delivering shareholder reports and other materials to investors. The deadline for the comments is October 21, 2018.

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