Consumer Action Urges the SEC to Rescind Proposed E-Delivery Rule for Shareholder Reports
Consumer Action, a national nonprofit organization dedicated to empowering underrepresented consumers nationwide, has submitted comments (opens as PDF) urging the Securities and Exchange Commission (SEC) to rescind proposed Rule 30e-3, which would allow mutual funds to discontinue the mailing of shareholder reports and other important investment information to investors.
“This proposal does not align with the mission of the SEC to protect investors,” wrote Consumer Action in its comments. “Providing financial disclosure is central to the agency’s mission and the 30e-3 proposal in its current form would not improve disclosure for those who prefer print and do not want to shift to e-delivery.”
The SEC’s first public comment period for Proposed Rule 30e-3 generated hundreds of comments in opposition to the rule. Many commenters, including elected officials, investors and concerned individuals, emphasized the harmful impact the rule would have on American shareholders who need access to paper reports. Following widespread public opposition to the rule, the SEC opened a second public comment period, which ended Jan. 13.
“As consumer advocates, we question whether this proposal is focused on reducing costs to investment firms rather than improving disclosures to investors,” Consumer Action continued. “Forcing investors to opt in to continue to receive important fund information is a backwards approach. It has the potential to confuse investors who suddenly stop seeing printed information from the funds they invest in.”
To read Consumer Action’s full comments to the SEC, click here.
About Consumer Action
For more than four decades, Consumer Action, a national nonprofit organization, has worked to advance consumer literacy and protect consumer rights in many areas, including credit, banking, privacy, insurance, health care and utilities. The organization achieves its mission through several channels, from direct consumer education to issue-focused advocacy.