Implementing the new summary prospectus rule: done right it will save both time and money; done wrong and look out for the bottom line

Abstract

Purpose

The purpose of this paper is to recommend a print distribution and web site disclosure strategy that is both cost effective and compliant with the SEC summary prospectus rule.

Design/methodology/approach

The paper explains the economics of offset printing versus digital printing on demand (POD) and printing prospectuses at the traditional printer's site versus creating print‐ready PDFs electronically and making them available to fund distributors so they can print and deliver “on demand” on site. It provides a checklist of web site disclosure requirements for a fund to be compliant with the summary prospectus rule.

Findings

The paper finds that, by establishing a rock‐solid web strategy, coupled with new thinking on their printed prospectuses, firms can comfortably maximize their savings and establish a rational framework for investor disclosure envisioned by the SEC.

Originality/value

The paper provides cost effective guidance for compliance with the SEC summary prospectus rule.

Citation

Levering, J. (2009), "Implementing the new summary prospectus rule: done right it will save both time and money; done wrong and look out for the bottom line", Journal of Investment Compliance, Vol. 10 No. 4, pp. 51-53. https://doi.org/10.1108/15285810911007426