XBRL Final Rule for Mutual Funds Now Available

Another proverbial shoe dropped in place today as the SEC released the XBRL Final Rule for Mutual Fund Risk Return Summary on their website. At first glance, the rule looks to follow many of the items originally included in the Proposed Rule (save for the start date), and with the operating companies XBRL final rule, as follows:

1. Effective January 1, 2011 for all open-end mutual funds
2. Focused on Form N-1A  
3. Must be submitted concurrently or within 15 days of traditional (HTML) filing
4. Must be posted on company website by end of submission calendar day 
5. Penalties for not submitting
6. Limited legal liability, with provisions ending October 31, 2014 

Although the voluntary program is quickly coming to an end for operating companies, mutual funds are able to continue to submit risk-return information voluntarily through December 31, 2010, and indefinitely for their financials.  In addition, mutual funds can submit just portfolio holdings in XBRL without having to submit other financial (statement) information.

Good news is the entire rule is only 114 pages (almost 100 pages less than the operating companies rule).  Happy reading and stay tuned for a Bowne Plain English overview of this rule coming soon.

-Rob

Comments

[Sandeep]

Rob,

While I concurrent with your views, I am also a bit scared of the non-education of the persons from the issuer's side who would be responsible for the XBRL data tagging and filing thereof. Where I agree that Bowne is available to service their clients, but I feel that education a process owner is more than necessary.

Though I attended a seminar on initial introduction of XBRL filing held by Bowne Singapore at India, I feel there is a need for more information and a test live filing demo.