Twin Rivers Leads Consumer Organizations in Filing for Review of SEC Rule 30e-3

 
Twin Rivers Paper (Madawaska, Me., USA) recently filed a petition for review in federal court, along with a broad and diverse group of concerned parties, challenging the recently finalized SEC rule (30e-3).
 
The company stated that they believe the new rule reverses existing practice and will force investors who wish to continue receiving paper-based shareholder reports to take affirmative steps to preserve that ability. The company supports a petition that challenges the final rule as arbitrary, capricious, and not otherwise in accordance with law. According to the paper company this flies in the face of investor preferences, limits access to information, particularly for the elderly, less affluent, and rural communities without access to broadband internet, and runs counter to recommendations from the Commission’s own Investment Advisory Committee to address critical shortcomings in the rule. Groups joining the petition include Consumer Action, American Forest & Paper Association (AF&PA), the Coalition for Paper Options, and Printing Industries Alliance.

Twin Rivers released the following statement in regard to their concern on Aug. 3, 2018:
 
We believe the rule limits access to information and harms the elderly and needy.

"The current dual system of information delivery works. It effectively combines print with electronic options and ensures efficient and effective access to information," stated Ken Winterhalter, President of Twin Rivers, "The changes indicated in this rule represent a step backward and fail to address a wide range of shortcomings that will make it more difficult for vulnerable demographic groups to access critical investor information."

The SEC has found a solution in search of a problem. The Commission states the purpose of the rule is to permit electronic delivery of fund shareholder reports, while maintaining the ability of shareholders who prefer paper to receive reports in that form. The current system already allows for electronic delivery where investors prefer, an option that has been in place for over a decade.

TAPPI
http://www.tappi.org/