Disclosure Resource Center
Regulatory Developments
Tailored Shareholder Reports
On October 26, 2022, the SEC adopted rule and form amendments for mutual funds and ETFs that substantially changed the content and scope of disclosure in shareholder reports. Shareholder reports filed after June 24, 2024 are much more concise and include only key information for shareholders. Most information formerly included in annual and semi-annual shareholder reports, including financial statements and financial highlights, is now filed with the SEC on Form N-CSR and posted to funds’ websites. The changes reflect the SEC’s goal of layered disclosure in an effort to improve the retail investor experience.
- Proposal: https://www.sec.gov/files/rules/proposed/2020/33-10814.pdf
- Final Rule: https://www.sec.gov/files/rules/final/2022/33-11125.pdf
- ICI Comment Letter: https://www.sec.gov/comments/s7-09-20/s70920-8186011-227164.pdf
Retail Investor Experience
In June 2018, the SEC issued a request for comment seeking feedback on retail investors' experiences with fund disclosure and on ways to improve fund communication with shareholders. This initiative was part of a long-term project led by the SEC Division of Investment Management to explore the modernization of the design, delivery, and content of fund disclosures. The SEC received several comments, including from ICI, which generally showed that retail investors prefer concise, layered disclosure and feel overwhelmed by the volume of fund information they currently receive.
- SEC request for comment: https://www.sec.gov/files/rules/other/2018/33-10503.pdf
- ICI comment letter: https://www.sec.gov/comments/s7-12-18/s71218-4932121-178430.pdf