SEC Proposes Rules for Investment Company Advertising
On April 3rd, the SEC reopened the comment period for rules initially proposed in 2010. The proposed rules would, if adopted, require marketing materials for target date retirement funds (“target date funds”) to include a table, chart, or graph depicting the fund’s asset allocation over time (i.e., an illustration of the fund’s so-called “asset allocation glide path”). In 2013, the Commission’s Investor Advisory Committee recommended that the Commission develop a glide path illustration for target date funds that is based on a standardized measure of fund risk as a replacement for, or supplement to, the proposed asset allocation glide path illustration. The Commission is reopening the comment period to seek public comment on this recommendation. Comments should be submitted within 60 days after publication in the Federal Register, which is expected shortly.
SEC Defends FY 2015 Budget to Congress
On April 1st, SEC Chair Mary Jo White gave testimony before the House Committee on Appropriations outlining how the $1.7 billion request for the fiscal 2015 would be spent. The main areas are bolstering examination coverage for investment advisors; strengthening enforcement actions; continued upgrading of technology; and oversight of markets and regulatory responsibilities. Testimony.
SIFMA and FSR Criticize SEC Asset-Backed Securities Plan
On March 28th, Reuters reported that the Securities Industry and Financial Markets Association (SIFMA) and the Financial Services Roundtable (FSR) in a joint letter to the SEC asked that the Asset-Backed Securities (ABS) plan be dropped. Their main objection is that disclosure by banks and others of the details of the mortgages, including credit scores and borrowers’ geographic locations, in the ABS could violate other federal privacy laws. ABS Disclosure.