SEC Proposes Changes to Reporting Requirements for Investment Companies and Advisers

By Marisa Ruffles. On May 20th, 2015, the Securities and Exchange Commission published a proposal to modify the current regulatory reporting requirements for investment companies and investment advisers. This initiative is an effort to improve data reporting for mutual funds, ETFs, and other types of registered investment companies.

The SEC is proposing a new Form N-PORT, which would require certain registered investment companies to report information about their monthly portfolio holdings, and new Form N-CEN which would require registered investment companies, other than face amount certificate companies, to annually report certain census-type information. The Commission is also proposing that both of these new forms also be filed in a structured data format. This requirement will allow the SEC and the public to better organize and analyze the submitted data.

In a recent press release, SEC Chair Mary Jo White is quoted as saying “These recommendations will vastly improve the type and format of the information that funds provide to the Commission and to investors. Investors will have better quality and greater access to information about their fund investments and investment advisers, and the SEC will have more and better information to monitor risks in the asset management industry.”

The Commission is also proposing amendments to Regulation S-X and proposing a new Rule 30e-3, which would permit, but not require, registered investment companies to transmit periodic reports to their shareholders by making the reports accessible on a website. Also, proposed amendments to Form ADV will require increased disclosures for investment advisers. Lastly, the SEC is looking to rescind current Forms N-Q and N-SAR and to amend certain other rules and forms.

In the full rule, the SEC declares that these changes will “assist the Commission, in its role as primary regulator of investment companies, to better fulfill its mission of protecting investors, maintaining fair, orderly and efficient markets, and facilitating capital formation.”

The proposal comment period is open for 60 days after publication in the Federal Register.

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