In a widely anticipated move Wednesday, the
The summary prospectus will quickly give investors a basic understanding of the fund and permit them to compare one fund to another, said SEC Chairman Christopher Cox. Investors will also have access to more searchable information about mutual funds on the Internet an important improvement in their ability to comparison shop.
The new rule which takes effect Feb. 28 and becomes final at the end of 2010 requires funds to send investors key information in plain English, while referring them to a full statutory prospectus available online or by mail upon request. Funds can continue to mail investors a full prospectus, but the referral to complete information online should satisfy legal concerns.
The rule has been met with widespread support from the mutual fund industry for its practical approach and potential savings in postage and printing costs.
The