New Fund Facts delivery rule kicks in soon

The MFDA and IFIC have published an investor notice about the requirement (as of May 30, 2016) for dealers to deliver a Fund Facts document to clients before the purchase of a mutual fund. Under the current rule, dealers must provide Fund Facts to their clients no later than two days after their purchase.

Read: What’s wrong with gross of fees?

The MFDA and IFIC are providing the investor notice directly to their respective members – the MFDA to dealers and IFIC to dealers and fund managers. Each organization is encouraging its members to include the investor notice in clients’ quarterly statements and other mailings, or to provide the notice to clients electronically and by other means.

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