Investment Company Institute Supports SEC-Proposed Reporting Requirements (with Lofchie Comment)

In a comment letter to the SEC, the Investment Company Institute ("ICI") expressed general support for a number of SEC proposals to increase the public and regulatory reporting requirements imposed on SEC-registered investment companies. These proposals would require registered investment companies to engage in additional and more frequent reporting of portfolio holdings, allow funds to provide shareholder reports via websites and require investment advisers to provide the SEC with information about their separately managed account businesses.

The ICI stated that much of the additional information the SEC proposes to collect could enhance its ability to monitor and oversee the fund industry and to better analyze information in order to carry out its regulatory mission. Additionally, the ICI stated that it believes that the proposals will aid the SEC in monitoring risks and inform its consideration of any appropriate regulatory responses.

ICI's recommendations reflected a concern with confidentiality.

Lofchie Comment: While it is somewhat unusual to have regulated market participants provide enthusiastic support for costly new regulatory requirements, the ICI strongly endorsed the SEC-led review of industry-wide activities or products to assess their risk potential. This should be distinguished from the FSOC designating individual funds or asset managers as systemically important financial institutions. In short, it is much better to be subject to costly new rules than to be regulated as a quasi-bank by banking regulators.

See: ICI Comment Letter Supporting Modernization Proposals.Related news: SEC Proposes Amended Reporting and Disclosure Requirements for Investment Companies and Advisers (with Mehta and Lofchie Comments and Delta Strategy Group Summary) (May 20, 2015).