SEC Weighs Plan to Give Investors Fund-Cost Data
Wall Street Journal (08/18/00) Vol. 5, No. 17 p.C18; Burns, Judith

The Securities and Exchange Commission (SEC) is currently considering rules that would give mutual-fund investors personalized reports on the costs of holding their mutual funds. The SEC is making sure the cost of insisting on such reports is not prohibitive. Paul Roye, director of the SEC's investment-management division, says, "We're looking at ... what we can do to improve shareholder disclosure." Providing personalized data in semiannual shareholder reports is one possibility under consideration. The General Accounting Office (GAO), which recommended the proposed rules to the SEC, suggests that the data be included in quarterly account statements. Cody Goebel, an assistant director at GAO, points out that investors look at quarterly statements more closely than they do semiannual reports because the quarterly statements show the specific dollar amount in the investor's account, while semiannual reports are "not investor-specific."


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