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:

  • 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
  • The SEC will make this information available to the public after 60 days
  • Form N-Q is rescinded
  • 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
  • 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
  • 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
  • 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