The US Securities and Exchange Commission has proposed new rules and forms in an effort to make the reporting and disclosure of information by investment companies and investment advisors more onerous.

The regulator hopes that the new rules will, if passed, enhance the quality of information available to investors and allow the SEC itself to collect and use data provided by investment companies and investment advisers more effectively.

The new data reporting requirements are to fall on mutual funds, exchange-traded funds and other registered investment companies. The SEC proposes to introduce a new monthly portfolio reporting form (Form N-PORT) and a new annual reporting form (Form N-CEN) containing census-type information. It wants the information to be reported in a structured data format, the better to help it and the public to analyse the information. It also proposes to require more detailed and standardised disclosures in financial statements, while permitting mutual funds and other investment companies to make "shareholder reports" accessible on website, although why they are not able to do this already remains unknown.

The proposed amendments to the investment adviser registration and reporting form (Form ADV) would require investment advisers to provide additional information to help the commission and investors understand the risk profiles of individual advisors and the industry as a whole. The proposed amendments to Investment Advisers Act Rule 204-2 would require advisers to maintain records of performance calculations and communications related to performance.

The proposals will be published on the SEC’s website and in the Federal Register. The comment period for them will end 60 days after publication in the Federal Register.