Wednesday, November 21, 2007
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).