Disclosure

The U.S. Securities and Exchange Commission requires that funds make extensive disclosures to investors. These disclosures are contained in fund registration statements, shareholder reports, and proxy statements. As signatories of a fund’s registration statement, directors may be liable under the federal securities laws for material misstatements or omissions in it, including in the prospectus. For this reason, directors should be familiar with fund disclosures and satisfy themselves that the disclosures are accurate and complete. Further, prudence suggests that directors be comfortable with the process by which fund disclosures are prepared and updated.

Fundamentals for Newer Directors: Specific Regulatory Responsibilities—Disclosure

Below are links to additional resources created, published, and maintained by other organizations. They are merely a sample of additional resources for fund directors. IDC does not control, cannot guarantee, and is not responsible for their accuracy, timeliness, or continued availability. These links are provided solely as a service to fund directors and should not be construed as indicating in any way that IDC endorses either the content provided or the third-party providers of any such content.

ICI Mutual: Risk Management Studies

ICI Mutual: Mutual Fund Prospectus Liability: Understanding and Managing the Risk (2010) (pdf)