It took a meltdown: SEC finally improves mutual fund disclosure
These basic disclosure guidelines have been suggested for ages yet reasons for delay and continued study seemed unending. Not anymore.
The Securities and Exchange Commission has voted unanimously to improve mutual fund disclosure by requiring that funds provide investors with a concise summary – in plain English – of the key information they need to make informed investment decisions.
The new summary prospectus will appear at the front of a fund’s prospectus.
The commission also approved amendments to encourage funds to make greater use of the Internet so investors can receive more detailed information in a way that best suits their needs.
“Today’s action will help mutual fund investors more easily obtain the key information they need – such as the description of the fund’s investment objectives and strategies, fees, risks, and performance,” SEC Chairman Christopher Cox said in a statement.