SEC Proposed Rules: Investment Company Reporting Modernization

SEC Proposed Rules: Investment Company Reporting Modernization

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By Christopher L. Wallace, Business Assurance & Advisory Services Partner | Financial Services Team Leader

On May 20, 2015, the SEC proposed rules that would eliminate the requirement that mutual fund information be sent to investors in paper form (Release No. 33-9976, Investment Company Reporting Modernization).  If the proposed rule is finalized, it will permit mutual funds and other investment companies to provide investor financial information on their websites, thus modernizing how information is transmitted and reducing printing and mailing costs.  The proposed rule had a comment deadline of August 11, 2015.   Recently, two senators and a congressman told SEC Chair Mary Jo White that they were concerned that eliminating the paper requirement could be a disadvantage to some small investors that don’t have quick access to the internet.  On August 10, 2015, the lawmakers wrote “Given the significant adverse impact this rule would have on our nation’s small investors, especially on those who reside in rural communities without broadband connectivity, allowing sufficient time for thoughtful review and commentary on the proposed rule is an appropriate precaution to ensure the SEC is able to hear thoroughly from all interested parties”.  The lawmakers asked to extend the comment deadline by an additional 90 days.

About the Author

Chris is a member of the Firm’s Financial Services Industry Team, and specializes in serving the Firm’s broker dealer, hedge fund, private equity fund, real estate fund, and other financial service clients. Chris has over 20 years of experience in public accounting providing audit and consulting services to clients in various industries. He is the Practice Leader of Keiter’s Business Assurance and Advisory Services Group.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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