The SEC's proposed amendments to Form N-PORT would provide registered investment companies with an additional 15 days to file monthly reports of portfolio-related information, reduce the publication of reports from monthly to quarterly, and streamline certain reported information requirements. The changes follow a review of amendments the Commission made to the form in 2024, conducted in accordance with a Presidential Memorandum.
The agency said the amendments are designed to reduce reporting burdens without significantly affecting the SEC's use of the data or the public's ability to assess relevant information about funds. The proposal to reduce public disclosure frequency aims to protect fund shareholders by reducing risks associated with more frequent disclosure, such as external parties using portfolio holdings information in ways that increase costs for funds and their shareholders.
Under the proposed changes, Form N-PORT reports would be modified to remove "Names Rule" reporting requirements and add information about funds with share classes that operate as exchange-traded funds. The additional 15-day filing extension is designed to reduce the potential for errors and resubmissions in monthly portfolio reports.
The proposal represents part of the Commission's broader effort to streamline regulatory requirements for investment companies. The amendments consider developments that have occurred after the Commission's adoption of previous Form N-PORT changes in 2024, suggesting an ongoing evaluation of the form's effectiveness and burden on registrants.
"Reducing unnecessary reporting burdens and increasing efficiency in disclosure requirements is a top priority of the Commission," said SEC Chairman Paul S. Atkins. "This proposal provides registrants additional time to file the form, refines reporting items, and reduces the frequency of public reporting of fund portfolio holdings – all the while retaining insight into funds' portfolio-related issues."
In connection with the proposed amendments, the Commission separately extended compliance dates for Form N-PORT reporting requirements related to the "Names Rule" under the Investment Company Act of 1940. The new compliance dates are November 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.
The proposing release will be published in the Federal Register, with a 60-day public comment period following publication. The extension provides additional time for funds and the Commission to consider the proposed amendments and avoid costs associated with regulatory requirements the Commission is proposing to eliminate.