The Investment Company Institute is urging the SEC to clarify key points in proposed privacy rules in hopes of enabling funds to hold down the cost of providing shareholders notices about their rights to keep personal information confidential.

The SEC should permit mutual fund companies to send only one privacy notice for each household in which several household members invest in the same funds, said Craig Tyle, ICI general counsel, in a letter March 31 to the SEC. Householding, or allowing fund companies to send only one privacy notice to a household where several members invest in the same fund family, would help to reduce the amount of paper sent to shareholders, Tyle said.

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