SEC Adopts New Disclosure Rules For Mutual Funds

Law360, New York (November 19, 2008, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has voted to require mutual funds to give investors a summary in “plain English” of all the information they need to make an informed investment decision.

Under the rules approved by the commission Wednesday, every mutual fund will have to clearly describe the fund's investment objectives, strategies, risks and costs in a summary provided at the front of its prospectus.

The summary also must include details on the fund's investment advisers and portfolio managers, purchase and sales procedures, and tax...
To view the full article, register now.