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Money Management Executive

Funds Ask SEC for Extension of Compliance Deadline

Published September 24, 2001, 1:00 a.m. EDT
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Updated September 24, 2001, 1:00 a.m. EDT
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Several fund companies are seeking an extension of the Oct. 1 compliance date for after-tax return disclosure claiming that there are too many discrepancies in the methodologies used to compute after-tax returns.

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In a letter dated Sept. 20 to Paul Roye, the Securities and Exchange Commission’s director of investment management, lawyers from Fidelity, T. Rowe Price, Prudential Financial and Vanguard said the extension was necessary because, "there was a lack of agreement within the industry, as well as with third-party providers, on several key components of the calculation."

The companies want the compliance date pushed back to February 15, 2002, which is the same date that fund prospectuses must begin providing after-tax performance data. If the SEC doesn’t extend the deadline to February 15, the companies are seeking a 60-day reprieve that would push the compliance date back to Dec. 1.

Earlier this month, the Investment Company Institute held a meeting with its members and third party vendors in which it addressed these issues. The purpose of the meeting was to insure that vendors and ICI members use uniform after-tax reporting and calculation methodologies. (See MFMN 9/10/01)


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