SEC Amends Order Requiring Certain Institutional Investment Managers to Report New Short Sales of Section 13(f) Securities

September 22, 2008

The United States Securities and Exchange Commission (“SEC”) approved amendments to its temporary rule requiring the reporting of short sales of Section 13(f) securities by institutional investment managers. According to a press release issued yesterday, in addition to making technical amendments, the revised order provides that information submitted on Form SH will not be made publicly available immediately. Two weeks after the September 29, 2008 due date of the first Forms SH, the SEC will make the Forms available to the public. This amendment was made in an effort to help prevent artificial volatility in securities markets. It was perceived that by making the information available immediately investors could possibly mirror the short selling of other investors and thus further deteriorate certain stocks.

The order requiring Form SH is now in effect and temporarily requires every institutional investment manager that filed, or was required to file, Form 13F for the calendar quarter ended June 30, 2008 to file a report disclosing the number and value of securities sold short for each section 13(f) security. This information must be reported on the new Form SH. All section 13(f) securities sold short must be reported on Form SH. The new form must be filed through EDGAR. Reports must be filed on the first business day of every calendar week immediately following a week in which the institutional investment manager affected short sales. This order is also set to expire on October 2, 2008 unless extended.

RIA Compliance Consultants, Inc. provides Form SH consulting services on an hourly-fee basis. Please contact Jarrod James, Senior Compliance Consultant, if your firm needs help understanding the Form SH requirements, needs help preparing the Form SH, or requires assistance to submit Form SH.

Posted by Bryan Hill
Labels: Form 13F