H.R. 4618 would amend the Securities and Exchange Act to modify reporting requirements for some institutional investment managers. Under current law, institutional investment managers, such as investment advisers and broker-dealers that exercise investment discretion over $100 million or more in securities, are required to report quarterly to the Securities and Exchange Commission (SEC) on their holdings, including any equity securities, equity options and warrants, and convertible debt securities. Those disclosures are called Form 13F reports.
H.R. 4618 would authorize the SEC to require institutional investment managers to submit Form 13F reports monthly. The bill also would require those managers to disclose certain derivatives, including any security-based swaps, on the Form 13F report. Finally, H.R. 4618 would require the SEC to evaluate the criteria used to determine if an institutional investment manager may confidentially file a Form 13F report and report to the Congress on its findings.
Using information from the SEC, CBO estimates that implementing the bill would cost $2 million over the 2022-2027 period. Because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2022-2027 period would be negligible, assuming appropriation actions consistent with that authority.
