June 22, 2018

SEC Staff Provides No-Action Relief to Mutual Funds and Transfer Agents That Temporarily Delay Disbursement of Redemption Proceeds Based on Reasonable Belief of Financial Exploitation of Seniors and Other Vulnerable Adults

On June 1, 2018, the SEC staff granted the ICI’s request for assurance that it would not recommend enforcement action under Section 22(e) of the Investment Company Act of 1940 against mutual funds or their SEC-registered transfer agents if they delay for more than seven days the disbursement of redemption proceeds under circumstances leading to the reasonable belief that financial exploitation of seniors and other vulnerable adults has occurred, is occurring, has been attempted, or will be attempted.

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June 22, 2018

SEC Modernizes Delivery of Fund Reports and Seeks Public Comment on Improving Fund Disclosure

On June 4, 2018, the SEC adopted new rule 30e-3, which creates an optional “notice and access” method for delivering shareholder reports. Under the rule, a fund may deliver its shareholder reports by making them publicly accessible on a website, free of charge, and sending investors a paper notice of a report’s availability by mail. Investors who prefer to receive a full report in paper may choose that option at any time free of charge. Funds may rely on the new rule beginning on January 1, 2021.

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