The Securities and Exchange Commission (SEC) is seeking public comments on changes to the way investment companies advertise their performance to potential investors. The proposed changes, known as Rule 482, aim to ensure that advertisements provide balanced and informative information about investment objectives, risks, charges, and past performance, which may not guarantee future results. Additionally, the rule would align risk statements in advertisements with those required in official prospectuses, particularly for money market funds. Comments on the proposed changes are invited until March 24, 2025.
Simple Explanation
The SEC is asking people what they think about new advertising rules for companies that help people invest money. These rules want to make sure the ads are clear and honest about money risks and results, so people can make better choices.