DONOHUE SAYS SEC IS REVIEWING FUND INFO ON WEB SITES
Andrew (Buddy) Donohue, Director of the SEC’s Division of Investment Management, revealed that the SEC staff frequently reviews web site disclosure to ensure consistency with regulatory filings. He indicated that the staff often reviews financial statements posted on web sites. He also said that the SEC staff should be reviewing other web site information such as portfolio holdings information to provide “insight into compliance with stated policies.” In the same speech, Mr. Donohue encouraged fund companies to voluntarily expand web site disclosure about portfolio holdings, exposure to financial companies, and the money market fund guaranty program.
OUR TAKE: Make sure any web site disclosure is reviewed by your lawyers and compliance pros. The SEC is watching.