SEC Modifies Approach to Form N-PORT Filing Requirements

December 11, 2017

On Friday, December 8, 2017, the Securities and Exchange Commission (“Commission”) announced the adoption of a temporary final rule that effectively delays the required submission of reports on Form N-PORT via EDGAR (the Electronic Data Gathering, Analysis, and Retrieval system) by nine months.

During this period, larger fund groups must maintain in their records the information that is required to be included in Form N-PORT in lieu of the filing of reports. These records will be subject to examination by the Commission. Larger fund groups will then be required to begin submitting reports on Form N-PORT on EDGAR by April 30, 2019.

Smaller fund groups will continue to benefit from a filing start date that is one year after larger fund groups begin filing the form, and will be required to begin submitting reports on Form N-PORT by April 30, 2020.

Prior to this, the Commission had adopted Form N-PORT that required registered investment companies to report enhanced information about their monthly portfolio holdings in a structured data format, reflecting data as of June 30, no later than July 30, 2018.

The Commission explains that the delay is in recognition of the importance of sound data security practices and protocols for sensitive, non-public information. Earlier this year, Chairman Clayton initiated an assessment of the Commission’s cybersecurity risk profile and its approach to cybersecurity, which resulted in the commencement of a focused review of the EDGAR system. This delay will allow the Staff to complete the review and to implement and test any resulting modifications to the EDGAR system.


For further discussion of Form N-PORT requirements, please refer to the below Memoranda:

“Division of Investment Management Responds to Questions Regarding New Fund Reporting Rules”, July 26, 2017, http://xlo3.wpengine.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=862

“SEC Proposes to Increase Reporting Obligations of Registered Investment Companies”, June 2, 2015, http://xlo3.wpengine.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=690

“New Rules to Modernize Reporting Obligations of Registered Investment Companies”, May 31, 2017, http://xlo3.wpengine.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=850

It should be noted that the new rule also delays the EDGAR reporting requirements added to the Form N-PORT by the Investment Company Liquidity Risk Management Programs Adopting Release. For further discussion of the Liquidity Risk Management Rules, please refer to the below Memoranda:

“SEC Proposes Liquidity Management Rules for Mutual Funds and ETFs”, September 25, 2015, http://xlo3.wpengine.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=713

“SEC Adopts Liquidity Risk Management Program Requirements”, October 21, 2016, http://xlo3.wpengine.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=792


Categories

Investment Advisers, Investment Companies, Mutual Funds, Regulatory