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Three Takeaways from the SEC’s Tailored Shareholder Reports Frequently Asked Questions

What happened?

As most funds are in the throes of preparing for compliance with the new Tailored Shareholder Report (TSR) rules, the Securities and Exchange Commission (SEC) released a set of Frequently Asked Questions (FAQs) to help provide clarity on some questions the commission has received over the past several months. Topics ranged from broad-based securities market index, to Form N-CSR and website availability, to inline XBRL considerations, and more.

Here are our key takeaways regarding deliverables:

  1. Organization of financial statement data in Form N-CSR: As long as all the required information for Items 7-11 of Form N-CSR are included in the filing, the SEC is leaving the organization of that content—by item, by Fund, or even as one aggregate package—up to the filer’s discretion.
  2. Compliance dates: If Funds with reports dated May 31, 2024 can prepare and transmit a traditional shareholder report to shareholders ahead of the July 24 TSR compliance date, they may delay adopting TSR until their November 30 report.
  3. Print and E-Distribution: Shareholders with investments in multiple Funds may receive printed materials bound, stapled, or stitched together. Those who have opted into e-distribution can receive TSR(s) as direct links, links to a website landing page, or in the body of the email itself. In any of these cases, hard copy or digital, the distribution must be limited to the Fund(s) the shareholder is directly invested in.

To view the full FAQ, click here.

Still have questions? We can help. 

Our team of regulatory experts has studied the rules and has been providing guidance to our clients on how to navigate the complex Tailored Shareholder Reporting requirements. If you have questions or could use guidance, let us know.