SEC Chairman Paul S. Atkins stated that reducing unnecessary reporting burdens and increasing efficiency in disclosure requirements is a top priority of the Commission. He noted that the proposal provides registrants additional time to file, refines reporting items, and reduces the frequency of public reporting of fund portfolio holdings.
Under the proposed changes, funds would receive an additional 15 days to file monthly reports of portfolio-related information. This extension is designed to reduce the potential for errors and resubmissions.
The proposal also seeks to reduce the publication of reports from monthly to quarterly. The SEC stated this change is designed to protect a fund’s shareholders by reducing the risks of more frequent public disclosure, such as external parties using information about a fund’s portfolio holdings in ways that increase costs for the fund and its shareholders.
The amendments would modify Form N-PORT reports to streamline or remove certain reported information. Specific changes include removing “Names Rule” reporting and adding information about funds with share classes that operate as exchange-traded funds.
In a separate action, the Commission is extending the compliance dates for Form N-PORT reporting requirements related to the “Names Rule” under the Investment Company Act of 1940. This extension provides additional time for funds and the Commission to consider the proposed amendments and avoid certain costs associated with regulatory requirements that the Commission is proposing to eliminate.
The new compliance dates are Nov. 17, 2027, for fund groups with net assets of $10 billion or more and May 18, 2028, for fund groups with less than $10 billion in net assets as of the end of their most recent fiscal year.
The proposing release for Form N-PORT amendments will be published in the Federal Register. The public comment period will remain open until 60 days after the Federal Register publication date.