SEC Adopts Rule and Form Amendments Relating to Tailored Shareholder Reports and Fee Information in Registered Investment Company and Business Development Company Advertisements
March 08, 2023
The Securities and Exchange Commission recently adopted (i) rule and form amendments for mutual funds and exchange-traded funds registered on Form N-1A (collectively, funds)1 that will substantially impact the design, content and transmission of shareholder reports and (ii) rule amendments that will require fee comparability in investment company advertising (collectively, Final Rules or amendments). The Final Rules reflect the SEC’s goal of requiring funds to present key information to shareholders clearly and concisely.
Footnotes
1) Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements, Release No. IC-34731 (Oct. 26, 2022) (Adopting Release). At times, this Dechert OnPoint tracks the Adopting Release without the use of quotation marks. Terms not defined in this Dechert OnPoint have the meaning assigned to them in the Adopting Release. The amendments were proposed by the SEC in August 2020. Tailored Shareholder Reports, Treatment of Annual Prospectus Updates for Existing Investors, and Improved Fee and Risk Disclosure for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements, Release No. IC-33963 (Aug. 5, 2020) (Proposing Release). For additional information regarding the Proposing Release, please refer to Dechert OnPoint, SEC Proposes to Modernize Disclosure Framework for Mutual Funds and Exchange-Traded Funds, Modify Fee Information in Investment Company and Business Development Company Advertisements.
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