On October 26, the Securities and Exchange Commission (SEC) adopted new rules governing certain reporting and advertising by regulated funds.
The new rule requires the semi-annual and annual reports of open-end funds to highlight certain information in these filings to make it easier for shareholders to review. This information will have to be delivered to shareholders, repealing a rule that permitted funds merely to inform shareholders the filings are available on the fund's website. Funds will also be required to make available online and in Form N-CSR certain information about fund investments and financial information.
All investment companies (including registered closed-end funds and business development companies) will also be required to present fund fees and expenses in advertising materials in a manner that is consistent with the presentation of this information in the fund's prospectus.
The new rule becomes effective 18 months after publication in the Federal Register. Read the SEC's adopting release.
Originally Published by 14 November 2022
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