SEC WILL REQUIRE XBRL DATA-TAGGING FOR MUTUAL FUNDS
The SEC announced that it will require mutual funds to data tag key information about fees, performance, and investment strategies for all registration statements that become effective after December 31, 2009. The SEC intends to leverage the work on the summary prospectus and require firms to use the XBRL methodology to allow investors electronic access to easily compare and contrast similar funds. It will provide the text of the proposal as soon as possible.
OUR TAKE: The SEC has responded to some of the substantive concerns raised by the industry by offering ample time to implement the XBRL data-tagging. Nevertheless, the new disclosure regime will require significant changes to operations and technology.