The SEC has released guidance on summary disclosures for mutual funds, recommending the use of “plain English” and advising that the disclosures should not exceed four pages. The guidance lists five “rule and form requirements that, while not exhaustive of the disclosure requirements, are intended to focus funds on providing investors clear and concise disclosure,” including addressing non-principal strategies and risks in the prospectus and avoiding cross-references.
A ThinkAdvisor report on the guidance also notes that the SEC’s pending proposal on a summary prospectus for variable annuities has been delayed once again, from the scheduled September release to next March.
