Disclosure Reform Discussed at Recent Mutual Fund Interactive Data Roundtable

Disclosure reform and interactive data have become top priorities for the SEC. On June 12, 2006, the SEC held the first in a series of roundtables to explore the use of interactive data in disclosure documents by operating companies in general and mutual funds in particular . (Interactive data are financial or non-financial data that are electronically tagged so that the user—offeree, shareholder or analyst—can arrange or manipulate the data for the user's individual needs.)

The roundtable involved active participation by Chairman Cox, all of the SEC Commissioners, top SEC staff officials, and more than 20 representatives of individual companies, ICI, NASD, financial advisers, broker-dealers, consumer groups and professors. Participants included the Director and Associate Director of the Division of Investment Management. The ICI, which originally adopted a wait-and-see approach , has reversed course and undertaken to develop methodology for electronically tagging certain mutual fund disclosure. The ICI is seeking SEC rules providing that Internet access to mutual fund prospectuses equals delivery. The roundtable had no participants from issuers of variable insurance products or life insurance industry groups. Participants made a few passing references to annuities and insurance, but no specific mention of variable insurance products. The ICI announced that it expected to complete its work on interactive data in the first quarter of 2007.

The SEC plans to announce further roundtables on interactive data for the summer and fall. The SEC's press release is located at http://www.sec.gov/news/press/2006/2006-90.htm .