SIFMA Recommends Modifications to SEC-Proposed Rules on Investment Company Reporting Modernization

SIFMA expressed general support of the SEC's proposed new rules and amendments designed to modernize the reporting and disclosure of information to investors by registered investment companies. In a letter to the SEC, SIFMA explicitly suggested improvements to Investment Company Act Rule 30e-3, which would permit registered investment companies to transmit certain reports to investors by making those reports accessible online. However, SIFMA explicitly suggested improvements to Investment Company Act Rule 30e-3, which would permit registered investment companies to transmit certain reports to investors by making those reports accessible online.

Specifically, SIFMA is concerned that the proposed rule text does not address the role and obligations of brokerage firms to administer the proposed notice process for clients whose shares brokers hold in street name. Additionally, SIFMA believes that the rule as drafted would present logistical challenges and that some components would unnecessarily increase complexity and cost without comparable benefit to mutual funds and their investors.

See: SIFMA Comment Letter Announcement; SIFMA Letter to the SEC Regarding Investment Company Reporting Modernization.Related news: SEC Proposes Amended Reporting and Disclosure Requirements for Investment Companies and Advisers (with Mehta and Lofchie Comments and Delta Strategy Group Summary) (May 20, 2015).