RCA - June 1998 - Ask The Analyst - Electronic Communications

Q: My firm would like to place on its Web site communications such as mutual fund quarterly updates that the Advertising/ Investment Companies Regulation Department has already reviewed and found unobjectionable. My question is, because the layout and placement of disclosures may change, must we file these communications again when they appear on the Web?

A: You must re-file the communications if your firm has materially changed them from the versions previously filed with the Advertising/ Investment Companies Regulation Department. While it is not possible to enumerate here all changes that might be deemed material, you should carefully scrutinize any revisions to the layout and placement of disclosures, as well as other format modifications. For example, if disclosures that originally appeared immediately adjacent to a chart or graph are removed or relocated to a less prominent location, the presentation would need to be refiled as this would constitute a material change. You must also consider other potentially material changes associated with your modification of how the communication is being used. For example, a quarterly update mailed only to shareholders of a mutual fund is supplemental sales literature. The same update published on a Web site may be subject to different rules if the fund's prospectus is not included on the Web site in accordance with the SEC's interpretive positions on this subject. This material change in how the update is used would necessitate re-filing with the Advertising) investment Companies Regulation Department