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Consumer Groups Urge SEC to Drop Rule on Paperless Shareholder Reports

Friday, October 14, 2016

Press release from the issuing company

More than 900 Americans Filed Comments Asking SEC to Withdraw Rule 30e-3 and Maintain Paper as Default Delivery Option for Mutual Fund Reports

WASHINGTON, D.C. – Consumers for Paper Options (CPO), a coalition of individuals and organizations advocating for access to paper-based services and information, and its consumer group allies today urged the Security 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. During an SEC meeting today, the agency voted to postpone a final decision on Rule30e-3, despite public comments in the media that the rule would be dropped. 

Part of the broader Investment Company Reporting Modernization rulemaking, Rule30e-3 would allow mutual funds to simply post shareholder reports to a website and require investors to specifically request mail delivery – even though investors already have the ability to request this information electronically, and the majority have opted to continue receiving them by mail. More than 900 Americans, including individual investors and elected officials, have filed comments with the SEC in opposition to the rule and its negative impact shareholders who need access to paper reports. 

“A significant portion of the population lacks regular Internet access,” said Sally Greenberg, executive director of the National Consumers League – a partner of Consumers for Paper Options. “Seniors, minority Americans, disabled Americans, and those living in rural areas don’t always have access or the ability to use the Internet. They depend on paper materials for the information they need.”

Greenberg added, “We understand the desire to cut costs and eliminate waste. However, we urge the SEC to recognize that Rule 30e-3 places a higher priority on efficiency than on consumer rights, investor transparency and disclosure, and to drop this rule.”

 

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