The Securities and Exchange Commission has adopted a new rule to enhance the process of delivering fund shareholder reports to investors.
The commission said Tuesday the new process under Statement on Investment Company Rule 30e-3 aims to guide investors who invest in mutual funds, exchange-traded and other investment funds.
The new rule enables fund investors to choose a ânotice and accessâ method for delivering their shareholder reports online for free, as well as mailing investors a physical notice of each reportâs availability.
âThe new rule modernizes delivery options for fund information while preserving the right of fund investors to receive information in paper form as they do today,â SEC Chairman Jay Clayton said in a statement published Tuesday.
The earliest the SEC said the modified process will be adopted is Jan. 1, 2021.
The commission added it seeks feedback on how it can further modernize the design and delivery of fund information, as well as public comment on the framework for specific processing fees for sending shareholder reports and other data to investors.
SEC will accept responses until Oct. 31.