The proposal aims to make shareholder reports and prospectuses much shorter and more focused on relevant information for retail investors, such as expenses. The rule also would take aim at misleading ads.
The SEC proposal would make the shareholder report and prospectus clearer and more concise. Retail investors would be more likely to read them. The proposal would also tighten the advertising rules and takes aim at misleading claims. CFA Institute generally supports the proposal and offers recommendations for further improvements.