SEC Allows Electronic Delivery of 19a-1 Notices
The Division of Investment Management has issued a Guidance Update that allows closed-end fund sponsors to use electronic media to deliver the 19a-1 Notice describing distributions other than net income. To use electronic delivery (email), the shareholder must affirmatively consent in advance. Section 19(a) of the Investment Company Act requires closed-end funds to provide a written statement accompanying any distribution from a source other than the fund’s net income.
OUR TAKE: This is a good reminder that fund sponsors must deliver such a notice. The issue is whether getting the consents is worth the aggravation instead of just sending a piece of paper.