|  | | 2007 News and Press Releases | | |
HEADLINE NEWS:
SEC Proposes Improved Mutual Fund Disclosures
Amanda Ernst
Securities Law360. November 16, 2007
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EXCERPT: The U.S. Securities and Exchange Commission on Thursday proposed rule changes that seek to improve mutual fund disclosures by making information easier for investors to access and understand. The proposed rules would update the way mutual funds provide information to their investors by putting a summary of important information at the front of every prospectus and providing investors with a succinct "summary prospectus" that can be accessed through the Internet. The SEC said the changes would allow investors to make “informed investments decisions” and would enable them to “use and compare mutual fund information more effectively.” “The concept behind today’s proposal is disclosure that is layered in a manner that allows each mutual fund investor — and each intermediary, analyst, and other user — to quickly find and use the information that he or she needs and wants,” said Andrew J. Donohue, director of the SEC's division of investment management, in a statement Thursday. “The core of the proposal is a concise, plain English summary of key information about a mutual fund’s investment objectives and strategies, costs, and risks, with more detailed information available both in paper and in a user-friendly online format.” The proposed rules seek to amend the current Form N-1A, which is used by mutual funds to register under the Investment Company Act of 1940 and offer securities under the Securities Act of 1933. |
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