On June 5, 2018, the SEC voted to improve the experience of investors who invest in mutual funds, exchange-traded funds, and other investment funds by releasing the Investment Company Disclosure and Delivery Rulemaking Package. This package contains three separate but related releases that are part of a long-term project led by the Division of Investment Management to explore the modernization of the design, delivery, and content of fund disclosures.

On May 23, 2018, the SEC proposed new rules and amendments that would promote research on mutual funds, exchange-traded funds, registered closed-end funds, business development companies, and similar investment funds. These changes would reduce obstacles often encountered in providing research on investment funds by aligning the treatment of such reports with research on other public entities. The Congressional mandate of the Fair Access to Investment Act of 2017 (FAIR ACT) underlies the SEC’s actions in proposing these changes.

On May 1st, the Securities and Exchange Commission’s Division of Enforcement released answers to frequently asked questions concerning the Share Class Selection Disclosure (SCSD) Initiative. This initiative was announced earlier this year on February 12th with the goal of protecting advisory clients from undisclosed conflicts of interest and aid in returning money to those investors affected by previous undisclosed conflicts of interest.

The Securities and Exchange Commission has proposed a package of rulemakings and interpretations designed to enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers. These changes will also preserve access to a variety of types of advice relationships and investment products. Generally, the proposed regulations would enhance investor protection by applying consistent principles to investment advisers and broker-dealers that provide for clear disclosures, encouraging exercising due care, and addressing conflicts of interest.

On April 17, the SEC announced that the fee rates applicable to most securities transactions will be set at $13.00 per million dollars starting on May 22, 2018. The reduction in the fee rate is partly due to the higher dollar amount of covered sales in recent months.

With the last EDGAR release, the Securities and Exchange Commission updated EDGAR to accept the US GAAP 2018 taxonomy among other new taxonomies. It’s always a good practice to transition your SEC filings as soon as possible when the SEC accepts the new taxonomy year.