SEC Adopts Householding Rules Regarding Proxy and Information Statements

Washington, DC, November 8, 2000 - The Securities and Exchange Commission has adopted amendments to rules under the Securities Act of 1933 and the Securities Exchange Act of 1934 to allow the householding of proxy statements and information statements. The rule amendments are similar to the rules adopted in 1999, which permit the householding of prospectuses, annual, and semiannual reports. The rule amendments become effective on December 4, 2000.

In response to public comments, the final rules:

• shorten the notification period for householding by implied consent to sixty days, rather than the proposed ninety days;
• allow flexibility in the addressing of householded materials;
• permit companies to deliver the implied consent notice along with other materials;
• permit intermediaries to household material provided the company does not object;
• permit the householding of combined proxy statement/prospectuses delivered in connection with business combinations, exchange offers, and reclassifications of securities; and
• clarify that companies and intermediaries may household proxy materials to registered investment advisers and investment managers of ERISA plans without having to comply with the householding rules.

The Institute submitted comments on the proposal last January.