SEC Releases FAQs Related to Final Rule on Tailored Shareholder Reports
SEC Releases FAQs Related to Final Rule on Tailored Shareholder
January 29, 2024
The staff in the SEC’s Division of Investment Management has released a
series of FAQs related to the Commission’s October 2022 final rule on tailored investment reports for mutual funds and
exchange-traded funds. Under the final rule, such funds are required to “transmit
concise and visually engaging annual and semi-annual reports to shareholders . . . under
the Investment Company Act of 1940 . . . and to promote transparent and balanced
presentations of fees and expenses in investment company advertisements.”
The FAQs are divided into the following broad topics:
The meaning of an “appropriate broad-based securities index.”
Form N-CSR and the Web site availability requirements.
Binding individual shareholder reports of multiple funds.