The Securities and Exchange Commission's (“SEC”) new Tailored Shareholder Reports Rule, set to take effect on Wednesday, will require fund firms to adjust their disclosure framework.
Asset management partner Brian McCabe commented on this change in Ignites, noting that instead of sending investors instructions for accessing reports electronically, firms will need to write three- to four-page reports. This could impose a financial and operational burden for firms, since “it's just a lot of work to get done all at once.”
“If you have 100 funds and five classes on each fund, that's 500 reports in the same two-week period when you're also clearing the financials,” Brian said.
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