FACT SHEET

Shareholder Reports for 

Mutual Funds and ETFs; Fee 

Information in Investment 

Company Advertisements

U.S. SECURITIES AND EXCHANGE COMMISSION PAGE 1 OF 2

What’s Required

Shareholder Reports Tailored to the Needs of Retail Shareholders

The Commission’s final rule amendments would require mutual funds and ETFs that are 

registered on Form N-1A (“open-end funds” or “funds”) to transmit to shareholders concise 

and visually engaging annual and semi-annual reports that highlight information that is 

particularly important for retail shareholders to assess and monitor their fund investments on 

an ongoing basis. The final rule amendments would also facilitate funds’ ability to make 

electronic versions of their shareholder reports more user-friendly and interactive. In 

addition, open-end funds would be required to tag the information in their shareholder reports 

using Inline XBRL structured data language. 

Availability of Additional Information on Form N-CSR and Online

The new rules would require that funds make available online certain information that may 

be more relevant to investors and financial professionals who desire more in-depth 

information. This information also must be delivered free of charge upon request and filed 

on a semi-annual basis on Form N-CSR. This information includes, for example, a fund’s 

schedule of investments and other financial statement elements. The final rule amendments 

include requirements that will help ensure that investors can easily reach and navigate the 

information that appears online.

Amendments to the Scope of Rule 30e-3 to Exclude Open-End Funds

The amendments, if adopted, would exclude open-end funds from the scope of rule 30e-3, 

which generally permits certain registered investment companies to satisfy shareholder 

report transmission requirements by making these reports and other materials available 

online and providing a notice of the reports’ online availability, instead of directly providing 

the reports to shareholders. 

The Securities and Exchange Commission will consider adopting amendments to the 

requirements for annual and semi-annual shareholder reports provided by mutual funds and 

exchange-traded funds (ETFs) to highlight key information for investors. The Commission also 

will consider adopting amendments to the advertising rules for registered investment companies 

and business development companies to promote more transparent and balanced statements 

about investment costs.
FACT SHEET | Shareholder Reports for Mutual Funds and ETFs; Fee Information in Investment Company 

Advertisements

U.S. SECURITIES AND EXCHANGE COMMISSION Page 2 of 2

The amendments excluding open-end funds from rule 30e-3 are intended to help ensure that 

all open-end fund investors will experience the benefits of the new tailored shareholder 

reports. Open-end fund shareholders would directly receive the new tailored annual and 

semi-annual reports, either in paper or, if the shareholder has so elected, electronically. The 

final rule amendments would not affect the availability of rule 30e-3 for closed-end funds and 

management companies that offer variable annuity contracts. 

Fee and Expense Information in Investment Company Advertisements

The final rule amendments would require that presentations of investment company fees 

and expenses in advertisements and sales literature be consistent with relevant prospectus 

fee table presentations and be reasonably current. These rule amendments would affect all 

registered investment company and business development company advertisements that 

include fee and expense figures. The rule amendments would also address representations 

of fees and expenses that could be materially misleading. 

What’s Next

If adopted, the final rule amendments will become effective 60 days after publication in the 

Federal Register. The Commission is providing an 18-month transition period after the 

effective date of the final rule amendments to allow open-end funds adequate time to adjust 

their shareholder reports and comply with the rule 30e-3 changes. The Commission is also 

providing an 18-month transition period after the effective date to comply with the final rule 

amendments to the advertising rules. The final rule amendments that address 

representations of fees and expenses that could be materially misleading apply on the 

effective date.