ICI Supports NYSE Proposal to Require Listed Companies to Make Annual Reports Available OnlineWashington, DC, July 20, 2006 - The Institute applauds the New York Stock Exchange (NYSE) for its proposal that would require each listed company to have a website and to make its annual report to shareholders available on, or by a link through, its website. Background
The proposed rule change reflects amendments that eliminate the current NYSE Listed Company Manual requirement that listed companies distribute an annual report to shareholders; specify more precisely certain requirements applicable to listed foreign private issuers; amend the requirements for notices to and filings with the exchange; add a new section to the listed company manual that specifically requires listed companies to have and maintain a website; and reorganize and eliminate certain sections of the listed company manual. ICI Position
Given the tremendous growth in Internet use and its importance to investors as an information source, the Institute strongly supports the NYSE's "highly appropriate" proposal. ICI states that requiring issuers to make their annual reports available online will provide investors a more efficient way to obtain current financial information, allowing investors to search through documents for key information. ICI also recommends a technical change to the proposal to facilitate investment company compliance, noting that investment companies typically do not have, or maintain, their own websites. To accommodate this unique aspect of investment company operations, the Institute recommends that in the case of an investment company that does not maintain its own website, if the investment company's investment adviser, sponsor, depositor, trustee, administrator, principal underwriter or any affiliated person of the investment company maintains a website that includes the investment company's name, the investment company shall make its annual report available on, or by a link through, any one such website. The Institute also urges the SEC to move quickly to amend the proxy rules to permit all issuers, including investment companies, to make annual reports available online as an alternative to its delivery requirement. Related Links
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