The SEC’s Congressional Justification for its fiscal 2009 budget discussed the Division of Investment Management’s strategic priorities for fiscal 2008 and 2009. (An agency’s Congressional Justification, which is submitted in conjunction with the President’s budget request, details the agency’s recent accomplishments, how it spent past appropriations, and how it intends to use the requested funds.) The Congressional Justification identifies the Division’s top strategic priority for 2008 and 2009 as recommending that the Commission adopt and implement the recent proposal to revise mutual fund prospectus disclosure requirements and replace the profile with the summary prospectus. (This proposal was the subject of a Client Alert available at http://www.goodwinprocter.com/~/media/AEF906C8F8A74A778EA9C7E7D8E2A0FC.ashx.) The Division also anticipates recommending that the Commission propose in FY 2008 and adopt in FY 2009 a rule that would reform or rescind Rule 12b-1 under the Investment Company Act of 1940, as amended. Rule 12b-1 governs the use of a mutual fund’s assets to pay for distribution-related activities. The Congressional Justification also identifies the promotion of interactive data tagging in fund disclosure documents and financial reports as an ongoing priority.
Alert February 19, 2008