SEC weighs summary prospectus

Securities regulators are considering a proposal to require mutual funds to provide investors with a summary prospectus. The short document would appear at the front of each prospectus and provide, in plain English, information such as a fund’s investment objectives and strategies, risks and costs, tax consequences and compensation for financial intermediaries. Funds could send the summary version to investors but would have to provide the longer prospectus to investors who request it. For more details, visit sec.gov/rules/proposed/2007/33-8861.pdf.

Related Topics: Regulatory Moves