The U.S. Securities and Exchange has voted to propose rule changes that are intended to improve mutual fund disclosure.

The proposed rules would require that all mutual fund investors receive a clear, concise summary of key information needed to make an informed investment decision. The rule changes would also encourage funds to use the Internet to allow investors to choose the format in which they receive more detailed information and to provide that information in a more user-friendly format than is available today. The proposed rules are intended to enable investors to use and compare mutual fund information more effectively.

“The concept behind today’s proposal is disclosure that is layered in a manner that allows each mutual fund investor — and each intermediary, analyst, and other user — to quickly find and use the information that he or she needs and wants,” said Andrew Donohue, director of the commission’s Division of Investment Management. “The core of the proposal is a concise, plain English summary of key information about a mutual fund’s investment objectives and strategies, costs, and risks, with more detailed information available both in paper and in a user-friendly online format.”

The proposed rules to be published for comment include: amendments requiring every mutual fund to include key information in plain English in a standardized order at the front of the mutual fund statutory prospectus; and, a new prospectus delivery option, allowing firms to send key information to investors in the form of a “summary prospectus” and providing the summary prospectus, statutory prospectus, shareholder reports, and other information on a Web site.

Comments on these proposed rule changes are due 90 days after their publication.