ICI Welcomes SEC Amendments to Address Cybersecurity Concerns and Protect Sensitive Data in Form N-PORT Filings

Washington, DC; February 28, 2019—Investment Company Institute (ICI) President and CEO Paul Schott Stevens issued the following statement after the US Securities and Exchange Commission (SEC) adopted amendments to the timing requirements for reporting on Form N-PORT to address cybersecurity concerns raised by the Commission’s receipt of sensitive, nonpublic fund data on the form:

“We are very pleased that the SEC has taken this important step to allay substantially the information security risks posed by the original rule. This is a sensible approach that gives the SEC all the information it needs while minimizing risks to investors that could result from any unauthorized access to funds’ sensitive portfolio holdings information.”

Background on SEC Amendments to Form N-PORT Filings

The amendments announced yesterday will provide the Commission with the same data on Form N-PORT as is currently required but will provide for delayed filing of nonpublic fund data. The amount and timing of Form N-PORT information available to the public will not change.

The amendments require funds to file three monthly reports on Form N-PORT 60 days after the end of the fund’s fiscal quarter, rather than filing the nonpublic reports for the first two months of the quarter with the Commission within 30 days after each month-end. A fund’s monthly reports on Form N-PORT for the first two months of the fiscal quarter will remain nonpublic, and the monthly report for the third month will become publicly available upon filing, except for the data items that are not required to be filed publicly.

Funds must maintain the information required by Form N-PORT for each month of the quarter in their records 30 days after the end of such month and make the information available promptly to the Commission upon request.