On 10 July 2020, SEC proposed rules on form 13F for fund report of equity.
- SEC proposed amendments to update form 13F for institutional investment managers.
- Amend reporting threshold to reflect equities markets, not been adjusted for 40 years.
Form Use and Background
- SEC Rule 13(f) requires a manager to file a report with SEC, if the manager exercises investment discretion with respect to accounts holding equity securities over threshold.
- Aggregate fair market value on last trading day of any month in year, at least $100mn.
- Form gives SEC data, from large managers, on their investment activities and holding.
- Data used to assess manager influence and impact, maintain fair and orderly markets.
2020 Threshold Changes
- Raises reporting threshold to $3.5bn, from $100mn reflecting market value of equities.
- Increase in thresholds, aims to reduce the unnecessary burdens on smaller managers.
- While retaining disclosure, of over 90% of dollar value of holdings data currently filed.
- Rule would direct SEC staff to review form 13F reporting thresholds, every five years.
- Commissioner Herren Lee disputed projected cost savings, concern lost transparency.
- Eliminated ability of managers to omit small positions, to improve quality of data filed.
- Require managers to report numerical identifiers, for usability of information provided.
- Use number assigned by FINRA central registration depository (CRD), or by the IARD.
- Amend instructions requests related to confidential treatment of Form 13F information.
- 60-day comment period, following pending publication of rules in the federal register.