The SEC continuously tries to improve communication between shareholders and registered investment companies (RICs) while working towards easier access and delivery of information. The SEC recently adopted Rule 30e-3, which offers shareholders a “notice and access” method to receive all future shareholder information.
Under the new rule, RICs can offer shareholders the option to receive RIC reporting electronically, increasing the efficiency and timing of receiving fund information. If a RIC adopts Rule 30e-3, it must:
RICs may rely on the rule beginning no earlier than January 1, 2021, and are generally required to issue two years of notice to shareholders beginning on January 1, 2019, before relying on the rule. Newly offered RICs on or after January 1, 2021, may rely on the rule immediately. Investors preferring to receive the reports in paper may choose that option at any time free of charge.
If a shareholder elects to receive information electronically, shareholders can anticipate:
With the adoption of Rule 30e-3, the SEC is striving to modernize shareholders’ experience. The SEC is encouraging the public to provide further feedback to continue the improvement of delivery and design for shareholders.
Contact Lori Novak at email@example.com or a member of your service team to discuss this topic further.
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.
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