A split SEC today approved new rules addressing mutual fund disclosures and liquidity. Chair White and Commissioner Stein voted yes; Commissioner Piwowar voted no.
Here are the highlights of the new reporting modernization rules:
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A new monthly portfolio form, Form N-PORT, will require registered funds other than money market funds to provide portfolio-wide and position-level holdings data monthly. Data include:
– Data related to pricing of portfolio securities
– Information regarding repurchase agreements, securities lending activities and counterparty exposures
– Terms of derivatives contracts
– Discrete portfolio-level and position-level risk measures to better understand fund exposure to changes in market conditions
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The SEC will make this information available to the public after 60 days
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Form N-Q is rescinded
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Census reporting
– New Form N-CEN replaces Form N-SAR
– New form streamlines and updates information reported to SEC.
– Must be filed within 75 days of the end of the fiscal year, rather than semi-annually currently required
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Structured data format
– Funds would report portfolio and census information in a structured data format, which would improve the SEC’s ability to aggregate and analyze information across all funds and link reported information with information from other sources
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Increased disclosure concerning securities lending activities
– Fund registration statements must disclose income and fees from securities lending and the fees paid to securities lending agents
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Implementation
– Most funds would be required to begin filing reports on Forms N-PORT and N-CEN after June 1, 2018
– Fund complexes with less than $1 billion in net assets would be required to begin filing reports on Form N-PORT after June 1, 2018
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