Client Alert

SEC Approves NASD Advertising Rule Proposals Requiring Disclosure of Fund Expenses

July 31, 2006

Investment Management Practice Group

On July 5, 2006, the SEC approved the NASD’s proposal to amend Conduct Rules 2210 and 2211 to require members to disclose mutual fund expenses in all non-money market performance advertisements and correspondence. The amended rules add a new “text box” requirement for print advertisements, mandating that the new expense disclosure appear within a text box, and provide guidance as to the prominence and location of the disclosure for web-based, radio and television advertisements.

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Investment Management

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