An SEC proposal to require money managers to submit additional information about separately managed account clients should proceed carefully, said several letters filed Tuesday.
A letter from the Managed Funds Association warned that additional information on derivatives, for example, “would provide an inaccurate representation of market exposures.” MFA President and CEO Richard Baker said in a statement that MFA members “are hopeful the SEC will ensure they only collect additional information that furthers our shared goals, and the same protections against public disclosure apply to any new requirements that call for the reporting of sensitive information.”
The proposed changes to Form ADV reporting by investment companies would create a new monthly portfolio reporting form and standardized disclosures in financial statements, among other changes.
“We are very supportive of the overall initiative. We want to make sure that we are getting high-quality data,” said Barbara Novick, BlackRock vice chairwoman, in an interview. Issues to be addressed during rulemaking include confidentiality of client information and the possibility of building on current reporting forms instead of adding new ones, she said.
Mortimer J. Buckley, Vanguard Group chief investment officer, asked the Securities and Exchange Commission to extend the 18-month compliance period for a new reporting regime to 30 months.
