SEC Urged to Drop Proposed E-Delivery Rule for Shareholder Reports
Consumer Action, a national non-profit organization dedicated to empowering underrepresented consumers nationwide, has submitted comments urging the Securities and Exchange Commission (SEC) to rescind proposed Rule 30e-3, which would allow mutual funds to discontinue the mailing of shareholder reports and other important investment information to investors.
“This proposal does not align with the mission of the SEC to protect investors,” wrote Consumer Action in its comments. “Providing financial disclosure is central to the agency’s mission and the 30e-3 proposal in its current form would not improve disclosure for those who prefer print and do not want to shift to e-delivery.”
The SEC’s first public comment period for Proposed Rule 30e-3 generated hundreds of comments in opposition to the rule. Many commenters, including elected officials, investors, and concerned individuals, emphasized the harmful impact the rule would have on American shareholders who need access to paper reports. Following widespread public opposition to the rule, the SEC opened a second public comment period, which ends Jan. 13, 2016.
Consumer Action continued, “As consumer advocates, we question whether this proposal is focused on reducing costs to investment firms rather than improving disclosures to investors. Forcing investors to opt in to continue to receive important fund information is a backwards approach. It has the potential to confuse investors who suddenly stop seeing printed information from the funds they invest in.”
To read Consumer Action’s full comments to the SEC, click here.