(Article from Registered Funds Regulatory Update, July 2025)
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On May 14, 2025, the SEC reported that certain nonpublic data in Form N-PORT submissions made between February 3, 2025 and May 8, 2025 were inadvertently made public on EDGAR due to a software update. The SEC confirmed that the error was corrected, the error did not affect Form N-PORT filings made after May 8, 2025, and all affected filers had been notified and the exposed data removed.
Open-end funds, closed-end funds, and exchange-traded funds organized as unit investment trusts (excluding money market funds) are required to file Form N-PORT to report portfolio holdings information on a monthly basis. Nonpublic data in Form N-PORT filings include, among other things, a fund’s first and second months’ portfolio holdings information and other non-public data, such as a fund’s derivatives transactions information and liquidity classifications for portfolio investments. The SEC did not specify the types of data compromised.
In response, SEC Chair Paul Atkins ordered a comprehensive review of EDGAR to ensure its data integrity. On June 3, 2024, in testimony before the U.S. Senate Appropriations Subcommittee on Financial Services and General Government, he stated that the error was unacceptable and that the SEC is working to optimize efficiency and prevent redundancy.
SEC Statement, Statement on Certain Form N-PORT Data (May 14, 2025), available at: https://www.sec.gov/newsroom/speeches-statements/statement-form-n-port-051425.
Paul S. Atkins, SEC Chair, Speech, Testimony Before the United States Senate Appropriations Subcommittee on Financial Services and General Government (June 3, 2025), available at https://www.sec.gov/newsroom/speeches-statements/testimony-atkins-060325.