SEC Proposes FAIR Act Rules to Promote Research Reports on Investment Funds

FOR IMMEDIATE RELEASE

2018-92

Washington D.C., May 23, 2018 —

The Securities and Exchange Commission today proposed rules and amendments that would promote research on mutual funds, exchange‑traded funds, registered closed-end funds, business development companies, and similar covered investment funds. 

The proposal would reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public entities. 

"The proposed changes are intended to provide investors with greater access to research to aid them in making investment decisions," said SEC Chairman Jay Clayton.  "This congressional mandate recognizes the critical role that mutual funds and similar investment products play in helping Main Street investors meet their financial goals." 

If adopted, the proposal would generally establish a safe harbor for a broker or dealer to publish or distribute research reports on investment funds under certain conditions.  This proposed safe harbor is similar to a regulatory safe harbor that currently exists for research reports about other public entities.

The Commission took this action in furtherance of the mandate of the Fair Access to Investment Research Act of 2017 (FAIR Act).

The public comment period will remain open for 30 days following publication of the proposing release in the Federal Register.