If you have strong feelings about the labeling of mutual funds, now is the time to speak up.
| Walter Joseph "Jay" Clayton III|
U.S. Securities and Exchange Commission
This afternoon Jay Clayton
, chairman of the Securities and Exchange Commission (SEC
a public request for comment
on the regulatory agency's rules around fund names. More specifically, Clayton's team at the SEC wants ideas on improving rules intended to prevent funds from using "potentially misleading names," and they want fund firms and FAs to speak up.
"We are looking to investors and market participants for input on how our framework can be improved to help ensure that fund names inform and do not mislead investors," Clayton states.
For example, under rule 35d-1 (adopted in 2001), funds whose names mention a specific asset class or strategy have to invest at least 80 percent of their assets there.
Fundsters and others interested in sharing their feedback will have 60 days to share with the SEC.
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