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Investment Companies Receive Update to Interpretive Guidance

November 26, 2018

The Securities and Exchange Commission’s (“SEC”) Division of Investment Management has revised its interpretive guidance to help investment companies meet updated reporting requirements. Issued under the Investment Company Reporting Modernization Frequently Asked Questions, the updated guidance clarifies the final rules in Release No. 33-10231, Investment Company Reporting Modernization. Release No. 33-10231 increases fund company disclosures regarding investment holdings.

The update to the Investment Company FAQs states that reports on Form N-PORT, a new monthly portfolio form, do not need to be filed if a fund has been liquidated, merged or terminated and has no investments remaining despite not yet deregistering with the SEC. Additionally, Release No. 33-10231 calls for investment companies to submit Form N-PORT featuring information on items like portfolio security prices, repurchase agreements, and securities lending activities.

Investment companies must also file Form N-CEN, an annual reporting form that replaces the census information under Form N-SAR. This new form requires the disclosure of additional information on exchange-traded funds and securities lending.