Beginning January 1, 2021, registered management companies and certain registered unit investment trusts that have complied with the required transition period disclosures are now able to use electronic delivery to transmit shareholder reports.
To remind registered management companies and unit investment trusts of the steps required to comply with the use of electronic delivery of shareholder reports.
Registered management companies and unit investment trusts should note the following:
In order to be able to transmit shareholder reports electronically, the following materials must be publicly accessible, free of charge, at the website address specified in the paper notice:
If the materials required to be on the website are temporarily not available on the website, this does not violate the requirement provided that: (1) the company has reasonable procedures in place to ensure that the specified materials are available in the manner required by the rule; and (2) the company takes prompt action to ensure that the specified documents become available in the manner required by the rule, as soon as practicable following the earlier of the time at which it knows or reasonably should have known that the documents are not available on the website.
A paper notice (“Notice”) meeting the conditions below must be sent to shareholders within 70 days after the close of the period for which the shareholder report is being made. The Notice may contain only the information specified by the rule, and may include pictures, logos, or similar design elements so long as the design is not misleading and the information is clear.
To enhance the readability of the Notice, plain English principles must be used in the organization, language, and design of the Notice. The Notice must be drafted so that, at a minimum, it substantially complies with each of the following plain English writing principles: