Alert November 25, 2008

SEC Votes to Adopt Mutual Fund Summary Prospectus Proposal

At its open meeting on Wednesday, November 19, 2008, the SEC voted to adopt its “Summary Prospectus” proposal, which (i) revises the disclosure requirements for the statutory prospectus currently used by registered open-end management investment companies (“mutual funds”) and (ii) creates the new Summary Prospectus for use in mutual fund sales.  The revisions to mutual fund disclosure requirements create a brief, self-contained presentation of key fund characteristics that will appear in both the current statutory prospectus and the new Summary Prospectus.   Funds will be able to use the Summary Prospectus to satisfy certain prospectus use and delivery requirements under the Securities Act of 1933, as amended, subject to several conditions that include providing investors access to the statutory prospectus and other fund documents via the Internet. (For a detailed discussion of the SEC’s original proposal, see the December 5, 2007 Alert.)   As stated in the press release announcing this SEC action, the rule changes are effective on February 28, 2009, and funds must begin complying with the form changes on January 1, 2010.  The Alert will provide a more detailed description once an adopting release with full details of the proposal becomes publicly available.