With more than $3 trillion invested in mutual funds, both industry executives and federal regulators agree that something must be done to better convey vital information to investors. To that end, the Investment Company Institute last month asked the Securities and Exchange Commission to adopt a "profile prospectus" - a vastly simplified version of a mutual fund disclosure document. In an address to the trade group's annual meeting in May, SEC Chairman Arthur Levitt expressed his support for the effort and outlined other initiatives the SEC is taking to improve investor information. The following is excerpted from that speech.
Over the past two years, I've held a series of investor town meetings across America. These meetings not only give me an opportunity to advise people about the questions they should ask before they invest, they also provide a forum for hearing what investors want or need.