Shareholder Reports Rule 30e-3
March 20, 2023
On June 4, 2018, the SEC adopted a final rule allowing certain funds the option (not required) to satisfy the obligation for delivering shareholder reports via “notice and access.” A fund will have the option to post shareholder reports on the fund website and send investors a paper notice communicating that the report is available online (in lieu of mailing the full report).
If electing to utilize the “notice and access” option a fund must adhere to the following:
- Report accessibility. A shareholder report must be made available, free of charge and publicly accessible at a specified website.
- Notice. A notice must be mailed at each reporting period notifying shareholders of the availability of the report online.
- Quarterly holdings accessibility. Quarterly holdings for the last fiscal year must also be made available on the fund website.
- Fulfillment requirement. Upon request, a fund must send a printed copy of any regulatory document, including shareholder reports and quarterly holdings, within three business days of initial request (at no cost).
- Option to elect for paper delivery. A shareholder will reserve the right to opt-in to receive all shareholder reports in paper.
Additional details regarding the notice
- Must be sent to investors for every annual and semi-annual report, within 70 calendar days of the end of the reporting period
- A consolidated notice may be used for multiple funds
- May accompany account statements or other shareholder materials
- Required information:
- Prominent legend stating report availability online and in paper by request
- Statement that the report contains important information about the fund, including portfolio holdings and financial statements
- Website URL
- Toll-free number to contact the fund or financial intermediary
- Instructions for requesting a paper or email copy and indication that a paper or email copy will not be received unless requested
- Explanation that a shareholder can elect to receive paper copies of reports in the future and instructions for doing so
- Optional content may be included such as fund sponsor, listing of other information included in report, QR code or additional options for accessing website, additional shareholder information.
All Fund Groups: The earliest a fund may rely on the rule is January 1, 2021.
NOTE: Existing funds must inform investors of intent to rely on rule 30e-3 through prominent disclosure on the cover page of their regulatory documents for a period of two years prior changing delivery format.
- New funds starting after January 1, 2019, may rely on rule 30e-3 on January 1, 2021 if notice is provided to shareholders of intent to do so in their first public offering.
- New funds starting after January 1, 2021, need not provide advance notice.
What this means for funds utilizing “Notice and Access”
- Reduction in print and mailing costs
- Potential increase in print-on-demand fulfillment
- Increased importance of online presence and format of reports
FilePoint is prepared to assist with the adoption of Rule 30e-3 in several ways.
Formatting, printing and mailing of notices
FilePoint can work with your team to prepare the most cost-effective layout and method for printing and mailing the shareholder notice.
FilePoint has a fulfillment platform that can print-on-demand, inventory, mail and track the delivery of all requested documents, keeping a complete record for compliance purposes.
FilePoint has an interactive format for displaying shareholder reports on a website, modernizing the shareholder experience by utilizing the myriad capabilities of a web browser.
With easy navigation, searchable/sortable/exportable content, interactive charts/graphs, responsive (mobile-friendly) design and endless customization, a FilePoint LiveReport™ does not have constraints of a printable PDF, enabling it to seamlessly integrate shareholder report content into any existing website.