The US Securities and Exchange Commission (SEC) has extended compliance deadlines for amendments to its “Names Rule”, giving investment companies until 2027 or 2028 to meet the updated requirements, depending on the size of the fund group.
Under the revised timeline, fund groups managing more than $10 billion in assets will have until November 2027 to comply with the rule. Those overseeing less than $10 billion will have until May 2028, according to a 18 February press release. The rule requires funds with names suggesting a particular investment focus — such as “growth” or “ESG” — to invest at least 80% of their assets in line with that stated objective.
SEC Chair Paul Atkins said the rule is under review, alongside other regulations introduced during the previous administration. Speaking at a House Financial Services Committee oversight hearing on 11 February, Atkins described the Names Rule as part of a broader reassessment of measures affecting registered funds and investment advisers.
The amendments were originally adopted in 2023 under then-chair Gary Gensler, who said the changes would help ensure that a fund’s portfolio aligns with its name. This marks the second extension of the compliance deadline, and the latest changes also revise the asset thresholds determining when funds must comply.
As part of the update, registered investment companies will no longer be required to include Names Rule reporting within their Form N-PORT disclosures. Form N-PORT is used to report monthly portfolio and risk data to the SEC. The Commission said the move is intended to reduce reporting burdens without materially affecting the availability of relevant information for public assessment.
The SEC stated that the extended timeline would allow additional time for both funds and the Commission to consider proposed amendments to Form N-PORT and to avoid costs linked to regulatory requirements that may be removed.
Under the original 2023 framework, funds with more than $1 billion in assets under management were required to comply by December 2025, with smaller funds given an additional six months. In March last year, then-acting Chair Mark Uyeda announced a six-month extension while retaining the $1 billion threshold.
The SEC also published updated guidance in a new frequently asked questions (FAQ) document outlining staff views on whether funds using terms such as “money market”, “growth” or “high-yield” fall within the 80% investment requirement. The guidance does not address funds using terms such as “ESG” or “sustainability” in their names.
