Tailored Shareholder Reports

The SEC recently adopted amendments to upgrade shareholder disclosures consistent with a new layered disclosure framework, highlighting the most pertinent data for retail investors in an easy to find format while also offering regulators and any other interested parties' added detail. The new rules and form changes mandate that open end mutual funds and most ETFs must furnish shareholders with reports that are both concise and “visually appealing”. These new Tailored Shareholder Reports (TSRs) will replace the current 30e-3 notices and must be provided in print (unless opted out) and electronically.

These amendments bring about substantial modifications to both the information contained in the shareholder reports and their presentation, consolidating important data, and transferring other details that are currently found in the reports to different SEC filings, like Form N-CSR, or to the fund websites. The hosting requirements are more robust than ever, requiring all reports to be online and easily navigable with cross linking, as well as available as a printable download.

Key Takeaways

  • A unique TSR must be generated for every fund and share class level which is an unprecedented level of customization in disclosure requirements.

  • While these reports should be generally 2-4 pages in length, they will also require Inline XBRL tagging throughout the document.

  • The SEC has given a transition period of 18 months, so funds must switch to providing Tailored Shareholder Reports by July 2024.

Partner with EdgarAgents and File with Style™

While we applaud the SEC for their focus on transparency for investors and a clear mission to make investing more accessible and understandable, this is a fundamental transformation of disclosure requirements. We understand the complexity of compliance is of concern, and EdgarAgents is here to help with implementation. Larger Funds with multiple series and share classes are looking at potentially producing hundreds of unique TSRs, so digital management of content becomes more important than ever. Our proprietary platforms already utilize innovative automation techniques and tools that provide the fastest turnaround times in the industry. Our team of experts is ready to support our clients’ compliance with these new requirements in the most efficient manner.

As a strategic business partner within the financial services sector, EdgarAgents sees these reports as an opportunity as much as a requirement. The specific call to make these reports “visually appealing” opens the door further for the convergence of fund marketing and regulatory disclosure; we refer to this as File with Syle™. Speak with us to learn about the innovative solutions we are building to leverage these new Tailored Shareholder Reports, to transcend beyond yet another regulatory burden, and to instead seize the opportunity to further build on your branding.

EdgarAgents’ disruptive growth is built on a foundation of excellence, with successful execution of projects to the highest performance service levels in the industry. We are prepared and ready to assist you with this new mandate at every step along the journey.

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