Rule 139b Extended: Keeping Fund Research Honest and Simple
Published Date: 6/4/2025
Notice
Summary
The SEC wants to keep Rule 139b going, which helps brokers share honest research about investment funds without getting in trouble. This rule makes sure fund performance info is clear and fair so investors aren’t confused. If you’re a broker-dealer or investor, this extension means no new costs or changes, just more time to keep things running smoothly.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Estimated compliance time burden for broker-dealers
For PRA purposes the SEC estimates broker-dealers will publish about 5,091 Rule 139b covered investment fund research reports annually, with an estimated 1,030 broker-dealers responding (4.9 responses per dealer). The SEC estimates 3 internal hours per report, 14.7 annual internal hours per broker-dealer, and a total annual internal hour burden of 15,141 hours across broker-dealers.
Safe harbor for broker-dealer fund research
Rule 139b provides a safe harbor for a broker-dealer that publishes or distributes research reports about one or more covered investment funds while participating in the distribution of the fund's securities. The rule was adopted November 30, 2018 and became effective January 14, 2019.
Standardized fund performance disclosure
Rule 139b requires research reports about open-end funds that include performance information to present it under paragraphs (d), (e), and (g) of Rule 482, and requires research reports about closed-end funds with performance information to follow item 4.1(g) instructions of Form N-2. The SEC says standardized presentation helps address potential investor confusion about whether a communication is research or advertising.
No confidentiality or retention requirement for performance measures
The SEC states that performance measures calculated by broker-dealers are not required to be kept confidential and there is no mandatory retention period for those measures under the Rule 139b information collection.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Take It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in