Published: July 2015

The SEC should make shareholder reports accessible to all

The Securities and Exchange Commission's proposed Rule 30e-3 would eliminate the current requirement that important mutual fund information be mailed to investors in paper form. This rule would greatly impact small investors around the country, including seniors and the 25 percent of households that don't have access to the Internet, many of whom reside in rural communities without broadband connectivity.

Even though the majority of American investors prefer or need to receive shareholder reports through the mail, the Securities and Exchange Commission (SEC) has proposed Rule 30e-3, which would allow mutual funds to simply post shareholder information online. After a one-time notice, the burden would be shifted to investors to declare a continued preference for paper reports; otherwise they will only be able to access them online. Rule 30e-3 would impede access for many investors, especially the elderly, those with disabilities, and minority Americans – all demographics that are less likely to have regular Internet access.

Consumer Action, Consumers for Paper Options and the National Consumers League have submitted joint comments to the SEC opposing this harmful rule. Shareholder reports are important investment tools. Rule 30e-3 will potentially harm millions of investors – the majority of whom have already expressed a preference for paper-based reports and may not be able to reliably access them online.

 

Lead Organization

Consumers for Paper Options

Other Organizations

Consumer Action | Consumers for Paper Options | the National Consumers League

More Information

For more information, please visit PaperOptions.org.

Download PDF

The SEC should make shareholder reports accessible to all   (CA_CPO_NCL_Rule_30e-3_Comments.pdf)