Consumer Action urges reversal of e-delivery proposal for shareholder reports

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WASHINGTON, DC – Consumer Action, a national non-profit organization dedicated to empowering underrepresented consumers nationwide, has submitted comments urging the Securities and Exchange Commission (SEC) to rescind proposed Rule 30e-3, which would allow mutual funds to discontinue the mailing of shareholder reports and other important investment information to investors.

“As one of the nation’s leading consumer advocacy organizations, Consumer Action strongly opposes this proposal on the grounds that it would degrade disclosure for millions of American investors,” wrote Consumer Action in its comments. “Given that most investors have already expressed a preference for paper reports – as indicated in both the SEC’s own study on the potential switch to e-delivery as well as the two public comment periods for this rule, implementing Rule 30e-3 would directly undermine the needs and wishes of those the SEC is responsible for protecting.”

The SEC’s first public comment period for Proposed Rule 30e-3 generated hundreds of comments in opposition to the rule. Many commenters, including elected officials, investors, and concerned individuals, emphasized the harmful impact the rule would have on American shareholders who need access to paper reports. Following widespread public opposition to the rule, the SEC opened a second public comment period, which ends January 13, 2016.

Consumer Action concluded its comments by underscoring the SEC’s responsibility to uphold the interests of the American public. “We ask that the SEC reconsider and formally withdraw Rule 30e-3 to ensure that the needs of individual Americans come before the desires of the financial services industry.”

To read Consumer Action’s full comments to the SEC, click here.

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. For more information, click here.




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