TThe SEC changed—and proposed further modifications
to—its mutual fund rules and forms (
www.sec.gov/news/press/2004-16.htm ). In one action, to improve
funds’ disclosure of costs, investments and performance, the
commission amended provisions pertaining to shareholder reports and
quarterly portfolio disclosures. These new requirements will apply to
reporting periods ending on or after June 18, 2004. The commission
also proposed two amendments. One would require funds’ directors to
disclose in detail the costs and benefits of each investment advisory
contract they approve. Another would ban mutual funds’ use of
brokerage commissions (which are fund assets) to finance the promotion
or sale of fund shares—a practice that can increase fund expenses and
reduce investment returns. Comments are due April 26.
Disclosure
