SEC Votes to Propose Expansion of Interactive Data Voluntary Program; Also Votes to Propose Rules Regarding Nationally Recognized Statistical Rating Organizations

FOR IMMEDIATE RELEASE
2007-12

Washington, D.C., Jan. 31, 2007 - The Securities and Exchange Commission today voted to publish for comment rule amendments that would expand the agency's interactive data voluntary program to enable mutual funds to submit data tagged risk/return summary information. The Commission also voted to propose rules required under the Credit Rating Agency Reform Act of 2006.

1. Expansion of Interactive Data Voluntary Program to Include Mutual Fund Information

The Commission voted to propose rule amendments to enable mutual funds to submit risk/return summary information from their prospectuses using interactive data under the Commission's voluntary program. The risk/return summary at the front of every mutual fund prospectus includes information about a fund's investment objectives and strategies, risks, costs, and historical performance.

The submission of tagged risk/return summary information would be supplemental and would not replace the required official versions of the information. Any mutual fund submitting tagged risk/return summary information would be required to include this information as an amendment to a filing on Form N-1A, the registration form for mutual funds.

The proposed rule amendments would permit mutual funds to submit tagged risk/return summary information using a taxonomy being developed by the Investment Company Institute (ICI). This month, the ICI released its draft risk/return summary taxonomy and announced that it would provide a 45-day period for public review and comment. The taxonomy, as well as instructions for commenting on the taxonomy, are available at the ICI's Web site at http://members.ici.org/xbrl.

Data tagging uses standard definitions (or data tags) to translate text-based information into data that is interactive, that is, data that can be retrieved, searched, and analyzed through automated means. Tags are standardized through the development of taxonomies, which are essentially data dictionaries that describe individual items of information and mathematical and definitional relationships among the items. Tagged information can help investors, analysts, and other users to mine the wealth of information contained in detailed paper disclosure documents, providing users with the ability to access precisely the information in which they are interested and to analyze that data.

Comments on these proposed amendments should be received by the Commission within 30 days of their publication in the Federal Register.

2. Proposed Rules to Implement the Credit Rating Agency Reform Act of 2006

The Securities and Exchange Commission voted to propose rules to implement provisions of the Credit Rating Agency Reform Act of 2006 (Public Law No. 109-291), which was enacted on Sept. 29, 2006. The Credit Rating Agency Reform Act defines the term "nationally recognized statistical rating organization" (NRSRO), provides authority for the Commission to implement registration, recordkeeping, financial reporting, and oversight rules designed to ensure that NRSROs conduct their activities with integrity and impartiality, and directs the Commission to issue final rules no later than 270 days after its enactment (or by June 26, 2007).

Comments on these proposals should be received by the Commission within 30 days of their publication in the Federal Register.

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The full text of the detailed release concerning these items will be posted to the SEC Web site as soon as possible.

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