Late last year, the Securities and Exchange Commission quietly passed amendments to improve mutual fund disclosure. At the heart of the regulation, which is available here, is a requirement that firms prepare three to four-page plain English prospectus summaries for all funds. I’ve actually read the document (exciting life I lead, I know), and it’s something that will benefit both investors and fund companies.

Investors will likely value the summary document much more than the current prospectus, which is about as fun to read (and as thick) as a telephone book. Fund companies, on the other hand, should value the fact that e-delivery is allowed as long as the four-page summary is mailed. One would think this would save tons of money on printing and postage.

Our friends over at Addison will be doing a webinar next week on this new ruling and how asset management firms can take advantage of the new rules. Topics will include:

  • Understanding what is mandatory and what is optional
  • Upcoming challenges for Mutual Fund firms
  • Cutting costs by taking advantage of Rule 498
  • Recommendations

Although Corporate Insight is not providing the webinar, we thought it was an important topic and so we figured we’d mention it here. To register for the webinar, click here.