The Securities and Exchange Commission proposed changes to Form N-PORT, used by most registered investment companies to disclose their portfolio holdings. The amendments, according to the agency, aim to reduce reporting burdens while maintaining data quality for regulators and the public.
Key proposed changes include giving funds an extra 15 days to file monthly portfolio reports; reducing the public release of these reports to quarterly from monthly; and streamlining the information funds are required to report. Notably, the changes would remove certain “Names Rule” reporting and introduce new details for funds with exchange-traded share classes.
The Names Rule of the Investment Company Act of 1940 requires that registered investment companies and business development companies invest at least 80% of their assets in line with the investment focus implied by their fund’s name. The goal of the rule is to ensure that a fund’s name accurately reflects how its assets are managed.
Separately, the SEC is extending compliance deadlines for Names Rule reporting requirements: Large fund groups (with at least $10 billion in assets) now have until November 17, 2027, to comply, while smaller groups have until May 18, 2028.
Both amendments are part of an SEC trend led by Chair Paul Atkins to limit disclosures, which the agency has repeatedly described as burdensome.
Atkins has previously argued that disclosures should scale with a company’s size and has repeatedly emphasized his goal of having more companies go public through initial stock offerings. As part of that effort, the SEC has included in its proposals a policy that would enable companies to compel shareholders to accept private arbitration, rather than having access to the courts for adjudicating complaints. Institutional investors quickly rebuked the change in a November 2025 letter. The letter raised concerns about the lack of public consultation and stated the move would destabilize U.S. markets.
Atkins, speaking at the Texas A&M School of Law’s corporate law symposium on Tuesday, reiterated the agency’s stance on limiting disclosures. He insisted that “preparing the required disclosure consumes significant time from boards and management and can impose substantial costs through the need for specialized lawyers, accountants and consultants.” He continued, “Yet, the resulting information may not benefit or protect investors because of its volume, complexity and lack of relevance. In short, disclosure intended to inform can instead overwhelm.”
Atkins also addressed various disclosures the agency aims to deregulate, including executive compensation. He specifically mentioned the “Pay Versus Performance” rule, which requires public companies to disclose executive compensation in relation to the company’s financial performance. Atkins stated that the agency would seek to simplify these requirements.
The latest proposed amendments concerning fund holding disclosure requirements are available for public comment for 60 days following their publication in the Federal Register.
Tags: Disclosure, SEC