Released: October 18, 2016

Consumer Action urges SEC to mothball shareholder report plan

900+ consumers asked SEC to maintain paper as default delivery option

Contact: .(JavaScript must be enabled to view this email address), 202-544-3088

WASHINGTON, DC—Consumer Action urges the Security and Exchange Commission (SEC) to follow through on reports that it will permanently drop proposed Rule 30e-3, which would allow mutual funds to discontinue the mailing of shareholder reports and other important investment information. Consumer Action has called for keeping paper as the delivery default and allowing shareholders, if they prefer, to call, write or drop a pre-written card supplied by the mutual fund company in the mail to opt for electronic delivery. (Read our comments.)

During an SEC meeting last week, the agency decided to postpone a final decision on Rule30e-3.

Part of the broader Investment Company Reporting Modernization rulemaking, Rule30e-3 would allow mutual funds to simply post shareholder reports to a website and require investors to specifically request mail delivery – even though investors already have the ability to request this information electronically, and yet the majority have opted to continue receiving them by mail. More than 900 people, including individual investors and elected officials, have filed comments with the SEC in opposition to the rule.

“Despite the perception that all Americans are thriving in the digital revolution, the reality is that a significant portion of the population lacks regular Internet access,” said Linda Sherry, director of national priorities for Consumer Action. “We hear from consumers across the country, including seniors, minority Americans, disabled Americans, and those living in rural areas, who struggle with digital literacy and depend on access to paper materials for the information they need.”

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About Consumer Action
For more than four decades, Consumer Action, a national non-profit organization, has worked to advance consumer literacy and protect consumer rights in many areas, including credit, banking, privacy, insurance, healthcare and utilities. The organization achieves its mission through several channels, from direct consumer education to issue-focused advocacy.