2025-01417Notice

SEC Seeks Comments on Updating Investment Ad Rule 482

Published Date: 1/22/2025

Notice

Summary

The SEC wants to update Rule 482, which helps investment funds share ads with important info about their performance. This affects investment companies that sell shares to the public, making sure their ads stay clear and fair. The update asks for your thoughts before finalizing changes that could impact how and when funds share info, but won’t add big costs or delays.

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

Estimated Compliance Burden for Respondents

The SEC estimates the total annual burden to comply with the amended Rule 482 at 577,896 hours, with an average time cost of $213,154,498 per year. These figures are the Commission's Paperwork Reduction Act estimates for respondent burden.

Ads Must Show Key Fund Facts

If you own or might buy a mutual fund or variable annuity, fund ads under Rule 482 must tell you to consider the fund's objectives, risks, charges, and the availability of the prospectus. Ads that show performance must also include standardized performance data, sales-load or other nonrecurring fee information, a legend that past performance is not a guarantee, and must disclose that month-end performance figures are available by website or a toll-free phone number.

Firms Must File Rule 482 Advertisements

If you run a fund that uses Rule 482 ads, those advertisements must be filed either with the SEC or with FINRA (filing with FINRA can satisfy certain Investment Company Act filing requirements). The collection and filing obligations are part of the Rule 482 safe harbor framework.

Money Market Fund Risk Statements Updated

Rule 482 was amended (adopted November 7, 2024) to correct outdated cross-references and to make the risk statements that money market funds must include in advertisements match the risk statements required in their prospectuses. This aligns advertising language with the money market fund regulatory changes adopted in the 2023 reforms.

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Key Dates

Published Date
1/22/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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