SEC Enhances Reporting on Forms N – PORT & N – CEN ; Issues Liquidity Guidance | Dechert LLP

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The SEC also issued a proposed rule that would require registered investment companies to disclose their holdings of certain types of securities, including private equity and hedge funds. **Form N-PORT and Form N-CEN Amendments**

The SEC’s amendments to Form N-PORT and Form N-CEN aim to enhance transparency and improve investor understanding of the investment activities of registered investment companies. These amendments increase the frequency and scope of information required to be reported to the SEC. **Increased Frequency:** The amendments require registered investment companies to report more frequently, with a shift from quarterly to monthly reporting for certain information.

**Form N-PORT**

Form N-PORT is a standardized reporting form used by investment funds to report their financial information to the Securities and Exchange Commission (SEC). It is a crucial tool for investors to understand the fund’s performance and make informed investment decisions. **Filing and Publication Frequency**

The Amendments to Form N-PORT significantly impact the frequency of reporting. Under the new rules, funds will be required to file monthly reports with the SEC, with public availability of most data 60 days after each month end. This change from the previous quarterly reporting frequency significantly increases the frequency of information dissemination.

The summary provided focuses on two key areas of change within the SEC’s Form N-CEN: amendments to the Form itself and changes to the entity identifier requirements. **Detailed Text:**

The Securities and Exchange Commission (SEC) is making significant changes to its Form N-CEN, a crucial document for reporting entities in the financial industry. These amendments aim to enhance transparency and improve the accuracy of information submitted by these entities.

The SEC has also provided guidance on the meaning of “cash” in the context of the Liquidity Rule. This guidance clarifies the definition of cash as it applies to the liquidity classification of certain non-U.S. investments. The SEC also addressed the considerations related to the liquidity of certain non-U.S. investments, providing practical insights on how to manage liquidity risks associated with such investments. ## Liquidity Rule: A Deep Dive

The Liquidity Rule, a crucial component of the SEC’s regulations for the U.S. investment management industry, demands robust liquidity risk management practices from fund managers.

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