SEC Adopts "Summary Prospectus" and Related Rules Designed to Improve Mutual Fund Prospectus Disclosure
By The Investment Management Practice
On January 13, 2009, the Securities and Exchange Commission (the Commission) adopted a number of new rules as well as rule amendments (collectively, the Summary Prospectus Rules) designed to simplify mutual fund prospectus disclosure and to provide funds with the option to sell shares by means of a short (3-4 page) summary document (Summary Prospectus). The Summary Prospectus Rules also contain provisions which eliminate from exchange-traded fund (ETF) prospectuses information not relevant to most ETF investors. Finally, the Summary Prospectus Rules require that all funds post certain information on their Internet website and require that these website documents provide for complex linking capability between, as well as within, documents.