Investment Company Advertising: Target Date Retirement Fund Names and Marketing, 20749 [2012-8348]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 67 (Friday, April 6, 2012)]
[Proposed Rules]
[Page 20749]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8348]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 230 and 270

[Release Nos. 33-9309; 34-66720; IC-30026; File No. S7-12-10]
RIN 3235-AK50


Investment Company Advertising: Target Date Retirement Fund Names 
and Marketing

AGENCY: Securities and Exchange Commission.

ACTION: Proposed rule; reopening of comment period.

-----------------------------------------------------------------------

SUMMARY: The Securities and Exchange Commission is reopening the period 
for public comment on amendments it originally proposed in Securities 
Act Release No. 9126 to allow interested persons to submit comments on 
the results of investor testing regarding target date retirement funds. 
The rule proposal would, if adopted, require a target date retirement 
fund that includes the target date in its name to disclose the fund's 
asset allocation at the target date immediately adjacent to the first 
use of the fund's name in marketing materials; require marketing 
materials for target date retirement funds to include a table, chart, 
or graph depicting the fund's asset allocation over time, together with 
a statement that would highlight the fund's final asset allocation; 
require a statement in marketing materials to the effect that a target 
date retirement fund should not be selected based solely on age or 
retirement date, is not a guaranteed investment, and the stated asset 
allocations may be subject to change; and provide additional guidance 
regarding statements in marketing materials for target date retirement 
funds and other investment companies that could be misleading.

DATES: The comment period for the proposed rule published June 23, 
2010, at 75 FR 35920, is reopened. Comments should be received on or 
before May 21, 2012.

ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/proposed.shtml);
     Send an email to rule-comments@sec.gov. Please include 
File No. S7-12-10 on the subject line; or
     Use the Federal eRulemaking Portal (https://www.regulations.gov). Follow the instructions for submitting comments.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number S7-12-10. This file number 
should be included on the subject line if email is used. To help us 
process and review your comments more efficiently, please use only one 
method. The Commission will post all comments on the Commission's 
Internet Web site (https://www.sec.gov/rules/proposed.shtml). Comments 
are also available for Web site viewing and printing in the 
Commission's Public Reference Room, 100 F Street NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. All comments received will be posted without change; we do not 
edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: J. Matthew DeLesDernier, Attorney-
Adviser, at (202) 551-6792, Office of Regulatory Policy, Division of 
Investment Management, Securities and Exchange Commission, 100 F Street 
NE., Washington, DC 20549-8549.

SUPPLEMENTARY INFORMATION: The Securities and Exchange Commission 
(``Commission'') is reopening the period for public comment on proposed 
rule amendments that are intended to provide enhanced information to 
investors concerning target date retirement funds and reduce the 
potential for investors to be confused or misled regarding these and 
other investment companies. These amendments were proposed on June 16, 
2010,\1\ and the comment period initially closed on August 23, 2010. 
The Commission's proposal would, if adopted, amend rule 482 under the 
Securities Act of 1933 and rule 34b-1 under the Investment Company Act 
of 1940 to require a target date retirement fund that includes the 
target date in its name to disclose the fund's asset allocation at the 
target date immediately adjacent to the first use of the fund's name in 
marketing materials. The proposal also would amend rule 482 and rule 
34b-1 to require marketing materials for target date retirement funds 
to include a table, chart, or graph depicting the fund's asset 
allocation over time, together with a statement that would highlight 
the fund's final asset allocation. In addition, the proposal would 
amend rule 482 and rule 34b-1 to require a statement in marketing 
materials to the effect that a target date retirement fund should not 
be selected based solely on age or retirement date, is not a guaranteed 
investment, and the stated asset allocations may be subject to change. 
Finally, the proposal would amend rule 156 under the Securities Act to 
provide additional guidance regarding statements in marketing materials 
for target date retirement funds and other investment companies that 
could be misleading.
---------------------------------------------------------------------------

    \1\ Investment Company Advertising: Target Date Retirement Fund 
Names and Marketing, Securities Act Release No. 9126 (June 16, 2010) 
[75 FR 35920 (June 23, 2010)].
---------------------------------------------------------------------------

    The Commission recently engaged a consultant to conduct empirical 
research on individual investors' understanding of target date 
retirement funds and marketing materials related to those funds. 
Investors participating in an online survey were asked questions about, 
among other things, documents containing information about a 
hypothetical target date retirement fund, including information that 
would be required by the proposed amendments, if adopted. We have 
placed in the comment file for the proposed rule amendments the 
consultant's report concerning the online survey.\2\ In order to 
provide all persons who are interested in this matter an opportunity to 
comment on this additional material, we believe that it is appropriate 
to reopen the comment period before we take action on the proposal.
---------------------------------------------------------------------------

    \2\ See Comment File No. S7-12-10, available at https://www.sec.gov/comments/s7-12-10/s71210.shtml.
---------------------------------------------------------------------------

    We invite additional comment on the proposal in light of this 
material, and on any other matters that may have an effect on the 
proposal.
    Accordingly, we will extend the comment period until May 21, 2012.

    Dated: April 3, 2012.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-8348 Filed 4-5-12; 8:45 am]
BILLING CODE 8011-01-P