Proposed Rule: Investment Company Advertising: Target Date Retirement Fund Names and Marketing, SEC Release #: 33-9309; 34-66720; IC-30026

77 FR 20749

The SEC is reopening the period for public comment on amendments it originally proposed in SEC Release No. 33-9126 (75 FR 35920) to allow submission of comments on the results of the findings of empirical research on individual investors' understanding of target date retirement funds and related marketing materials. The rule proposal would, if adopted, require a target date retirement fund that includes the target date in its name to disclose the fund's asset allocation at the target date immediately adjacent to the first use of the fund's name in marketing materials; require marketing materials for target date retirement funds to include a table, chart, or graph depicting the fund's asset allocation over time, together with a statement that would highlight the fund's final asset allocation; require a statement in marketing materials to the effect that a target date retirement fund should not be selected based solely on age or retirement date, is not a guaranteed investment, and the stated asset allocations may be subject to change; and provide additional guidance regarding statements in marketing materials for target date retirement funds and other investment companies that could be misleading.

Comments Due: May 21, 2012

Cross References: SEC Release No. 33-9126, 75 FR 35920; Securities Act Rules 482 156; Investment Company Act Rule 34b-1; submit comments on S7-02-12 (external) view comments received (external).

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie; Brian W. Kleinhaus.