Funds Distributor Inc. of Boston recently created a division to help mutual fund companies comply with requirements being phased in by the Securities and Exchange Commission that prospectuses be written in "plain English."
The new unit, ProspectusWorks, will design and write prospectuses for fund groups as well as offer legal advice on properly simplifying documents such as form N-1A, which is used to register a new fund.
Writers, designers, and lawyers on the staff of another Funds Distributors unit, FDI Communications Inc., will help run ProspectusWorks, said Paula David, who heads both. Ms. David, a senior vice president of the parent company, said FDI Communications has been writing sales and marketing materials for about two and half years.
ProspectusWorks has a core group of eight people but may add more if they are needed, Ms. David said. The unit already has a few clients- including one 17-fund family-and others have expressed interest, Ms. David said. Though a handful of companies design prospectuses, she said, only hers has lawyers on staff.