9/14/2023 0 Comments A timely manner![]() ![]() To the extent that an investment company is unable to make certain filings or meet other requirements because of disruptions caused by COVID-19, the investment company should engage with the Division of Investment Management. We recognize circumstances may evolve, and some investment companies may encounter particularized obstacles. These are unprecedented times raising unique and often previously unconsidered issues. We encourage investment companies to communicate with investors about their delivery preferences. Given the current circumstances of COVID-19, however, investors may prefer electronic delivery of investment company materials rather than at-home, paper-based delivery. Investment companies generally deliver required materials to investors in paper unless an investor consents to electronic delivery. With respect to sales of investment company shares to new purchasers, however, investment companies must continue to deliver the fund’s prospectus or summary prospectus in a timely manner, based on the delivery preferences that have been expressed by the investor. Delivering Information to Fund InvestorsĪs part of its COVID-19 response efforts, the Commission stated that it would not provide a basis for enforcement action if an investment company does not physically deliver to existing investors the current prospectus of the investment company where the prospectus is not able to be timely delivered because of circumstances related to COVID-19, as long as certain conditions are met. We also encourage investment companies to consider whether their disclosures, including risk disclosures, should be revised based on how COVID-19-related events may affect the investment company and its investments. ![]() We are reminding investment companies with a December 31 fiscal year end of this obligation as they approach May 1, 2020, so that they may plan accordingly to ensure that they have updated their prospectuses in order to continue to sell shares to new investors and sell additional shares to existing investors. We remind investment company issuers of their obligations under section 10(a)(3) of the Securities Act of 1933 to update the information in their prospectuses, including the required underlying certified financial statements. Updating Prospectuses and Financial Statements We are issuing this statement to emphasize the ongoing importance to update and deliver required information to investors in a timely manner consistent with investment companies’ disclosure obligations, even during this period of operational challenge. Some of the relief issued was responsive to the operational challenges faced by funds and other market participants as a result of the shifts to remote business operations. Over the past several weeks, the staff and the Commission have provided guidance and targeted, conditional, and temporary relief as appropriate and as circumstances warrant. We are committed to promoting the updating and delivery of such information, which is particularly important to keep Main Street investors up to date about their investments. In light of the current uncertainties and market disruptions, investors need high-quality financial information more than ever. In that regard, we are focused on ensuring that investment companies continue to meet their obligations under the federal securities laws to provide material and timely information to investors. See also the lists in Kimble (2006).īold marks the dirty dozen, the 12 offenders most likely to weaken your work.The Division of Investment Management continues to closely monitor the impacts of the coronavirus disease 2019 (“COVID-19”) and consider the interests of long-term Main Street investors, who access the capital markets mainly through investment companies. There are many lists of complex words and suggested substitutes, like the one below. When you’re making word choices, pick the familiar or commonly used word over the unusual or obscure. > Choose your words carefully Use simple words and phrases Tips for starting a plain language program. ![]()
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