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Journal entry — Registered investment advisers and registered investment companies — SEC proposes to modernize reporting requirements

Published on: May 22, 2015

This week, the SEC issued proposed rules intended to modernize and enhance the reporting requirements for registered investment advisers and registered investment companies. In its press release, the SEC stated that the new rules would “enhance the quality of information available to investors and would allow the Commission to more effectively collect and use data provided by investment companies and investment advisers.”

The rules would require investment companies to use a new monthly portfolio reporting form (Form N-PORT) and a new annual reporting form (Form N-CEN, which would replace Form N-SAR). In addition, the rules would amend Regulation S-X to include “enhanced and standardized disclosures in financial statements.” Notably, additional information about derivatives would need to be provided under the new disclosure requirements. 

The proposals also “permit mutual funds and other investment companies to provide shareholder reports by making them accessible on a website.”

In addition, the proposed rules include amendments to Form ADV that would require investment advisers to provide additional information to the SEC and investors about the risk profile of individual advisers and the industry.

The comment period for the proposed rules will end 60 days after their publication in the Federal Register.

Registered investment advisers and registered investment companies — SEC proposes to modernize reporting requirements Image

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