SEC Issues 'Plain English' Rule For Fund Brochures

Law360, New York (January 26, 2009, 12:00 AM EST) -- In an effort to enhance public disclosure for mutual fund investors, the U.S. Securities and Exchange Commission has adopted new regulations requiring fund professionals to provide summarized investment brochure information “in plain English.”

The changes “require key information to appear in plain English in a standardized order at the front of the mutual fund statutory prospectus,” or a required narrative description of the fund, according to the rule, published Monday in the Federal Register.

The rule change also allows funds to send only summary prospectus information...
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