Market Overview

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


Rule Limits Access to Information and Harms Elderly and Needy

Earlier today, Twin Rivers Paper Company 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 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 petition challenges the final rule
as arbitrary, capricious, and not otherwise in accordance with law. It
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,
the Coalition for Paper Options, and Printing Industries Alliance.

"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.
  • The SEC rule is inherently unfair. The SEC rule will allow
    mutual funds to stop mailing printed reports to shareholders if a
    shareholder does not respond to the notice by applying a fictitious
    theory of "implied consent." Said another way, if after the
    shareholder receives the notice but does not respond, the shareholder
    will be deemed to have provided "implied consent" to stop mail
    delivery of reports. The proposed "implied consent" to E-delivery
    ignores studies indicating that investors prefer printed
    communications to electronic versions and constitutes an unnecessary
    regulatory intervention.
  • 92% of the public comments submitted to the SEC were in opposition
    to the proposed rule
    . The proposed rule will undoubtedly make it
    more difficult for mutual fund shareholders, especially the elderly,
    rural and lower-income groups, to access important information as it
    is extremely confusing…and ironically, does nothing to improve
    disclosure. The SEC's own investigation determined a significant
    portion of the affected class still lack access to high-speed internet.
  • Support for a change is lacking. The final rule fails to
    address key areas of concerns identified by consumer groups and the
    SEC's own investment advisory committee, which in fact recommended a
    different course of action altogether.

About Twin Rivers Paper Company
Rivers Paper Company, headquartered in Madawaska, Maine, is an
integrated specialty paper company that produces specialty packaging,
label, publishing, and technical specialty papers as well as dimensional
lumber. Targeting its manufacturing capabilities to specific market
segments, Twin Rivers creates competitive advantages through nimble
innovation and product development, service excellence and an unfailing
commitment to quality. The company's brands include Acadia® packaging
products, Alliance® label products, and Pharmopaque® pharmaceutical
papers. Twin Rivers is owned jointly by Atlas Holdings LLC and Blue Wolf
Capital. For more information, visit

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