Janus’ move last week to tie manager compensation to performance is indicative of fund firms’ move towards compliance with yet another SEC rule, reports the Wall Street Journal.

The rule requires funds to add more disclosure about how they compensate managers and how much managers are invested in their own funds.

While the rule doesn’t specify an exact date, new funds are required to include the information in their registration statements, while existing funds are required to put the information in fund prospectuses.

Michael Rosella of Paul, Hastings, Janofsky & Walker LLP, is working with fund firms to meet the requirement. "It's going to mean a lot more disclosure," said Rosella. Rosella told the WSJ that he’s working "to create templates of charts that can be filled in by the portfolio managers with some assistance from the fund's administration compliance."  

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