SEC's Proposed Rules on Mutual Fund Disclosure

The SEC has released for public comment its proposed rule on Enhanced Disclosure and New Prospectus Delivery Option for mutual funds.  In short, the proposal:

(1) requires key information to appear in plain English in a standardized order at the front of the mutual fund prospectus;

(2) allows the prospectus delivery requirement to be satisfied by sending the key information in a summary prospectus and providing the statutory prospectus via a website (with mailing to the investor, if he requests).