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ACCOUNTING AND SEC HEADLINES:

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Registered Investment Companies – SEC Proposes Amendments to Rules on Reporting Fund Portfolio Holdings

The SEC proposed amendments to the form used by most registered investment companies to report portfolio-related information. The changes 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 a fund.”

The proposed amendments to Form N-PORT follow a review (in accordance with a Presidential Memorandum) of the amendments the SEC made to the form in 2024. The proposal considers developments that have occurred after the Commission’s adoption of those amendments. The proposed amendments to Form N-PORT would:

• Provide reporting funds with an additional 15 days to file monthly reports of portfolio-related information on Form N-PORT, which is designed to reduce the potential for errors and resubmissions.
• Reduce the publication of reports from monthly to quarterly, a change 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.
• Modify Form N-PORT reports to streamline or remove certain reported information, including removing “Names Rule” reporting, and add information about funds with share classes that operate as exchange-traded funds.

In connection with the proposed amendments, but by separate action, the SEC is “extending the compliance dates for those Form N-PORT reporting requirements related to the “Names Rule” under the Investment Company Act of 1940, which addresses certain investment company names. This extension will provide additional time for funds and the Commission to consider the proposed amendments to Form N-PORT and avoid certain costs associated with regulatory requirements that the Commission is proposing to eliminate.”

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 as of the end of their most recent fiscal year.

The public comment period will remain open until 60 days after the Federal Register publication date.

Corp Fin Activities – SEC Corp Fin Director Discusses Agenda

James Moloney, Director of the SEC’s Division of Corporation Finance (Corp Fin), recently discussed the division’s agenda of projects. Moloney indicates that he is “ready to implement Chairman Paul Atkins’ sweeping agenda to return the agency to its core mission of protecting investors and facilitating capital formation. The intent of his agenda is to reduce barriers to going public, rationalize burdensome requirements while ensuring that investors continue to have access to the material information they need, and simplify and modernize our rules so that more companies are willing to go and stay public. The Division will play a starring role in executing that agenda. Just take a look at the long list of Division rulemakings on the Regulatory Flexibility Agenda.”

Projects on Corp Fin’s agenda include addressing:

• Semi-Annual Reporting (Corp Fin is working on formal rulemaking to move towards semi-annual reporting and is considering what other rule changes may be needed to ensure any transition to a semi-annual reporting process will be smooth and free from any regulatory turbulence).
• Crypto Assets (Corp Fin is preparing recommendations to the SEC in the form of interpretive guidance that provides a taxonomy for crypto assets and describes a framework for determining when crypto assets are subject to an investment contract. For those crypto assets that are subject to an investment contract, Corp Fin is also working on a proposal that will seek to provide a rational regulatory structure for the offer and sale of those securities).
• Regulation S-K (Corp Fin is reviewing disclosure requirements under Regulation S-K to potentially revise the requirements to focus on eliciting disclosure of material information and avoid compelling the disclosure of immaterial information).
• Holding Foreign Insiders Accountable Act (HFIAA) and Concept Releases (Corp Fin is working on rulemaking to implement provisions requiring officers and directors of reporting Foreign Private Issuers to comply with the Section 16(a) reporting obligations beginning March 18, 2026).
• Shareholder Proposals (Corp Fin is working on recommendations to the SEC on rulemaking to modernize the agency’s requirements on shareholder proposals).

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