Mutual Fund Managers Compliance Requirements for 2025: What You Need to Know

Mutual fund managers are facing increased regulatory pressure in 2025. With stricter SEC oversight, evolving ESG disclosure rules, and tighter reporting standards, compliance now demands clear controls, accurate documentation, and consistent execution across all operations.

As of January 2025, U.S. mutual fund assets reached $29.11 trillion. This underscores the growing scale and complexity of fund management and the critical importance of robust compliance frameworks to protect investors and maintain market integrity.

In this blog, we’ll highlight the updated compliance requirements mutual fund managers must meet in 2025. We’ll also cover practical insights into managing these obligations efficiently and how modern tools can help you stay ahead without adding operational burden.

• Mutual fund compliance ensures transparency, fairness, and investor protection through rules set by the SEC, FINRA, and other regulators.
• In 2025, funds must comply with enhanced reporting obligations, including more frequent filings and updates on portfolio holdings.
• The SEC’s updated Names Rule requires that at least 80% of a fund’s assets align with its stated investment focus.
• Fund managers need to stay ahead of compliance deadlines with automated tools, updated internal controls, and robust recordkeeping.
• Compliance platform helps streamline compliance workflows, automate tasks, and ensure adherence to 2025 regulations.

What’s New in Mutual Fund Compliance in 2025?

Mutual fund compliance requirements in the US are governed primarily by the Securities and Exchange Commission (SEC) and are designed to ensure transparency, investor protection, and the integrity of fund operations. For 2025, several critical compliance obligations and updates are in effect:

1. Enhanced Reporting Obligations: Registered investment companies must report portfolio holdings and related information more frequently to the SEC and the public, using updated Forms N-PORT and N-CEN. These amendments also require funds to report information about service providers used for liquidity risk management. While the compliance dates for these requirements have been extended now November 17, 2027, for larger fund groups and May 18, 2028, for smaller ones. Mutual fund managers should prepare their systems and processes in advance.
2. Names Rule Compliance: Amendments to the SEC’s “Names Rule” require that at least 80% of a fund’s assets align with the investment focus suggested by its name. This rule aims to prevent misleading fund names and ensure that investors understand the fund’s true investment strategy. The compliance date for larger groups is now June 11, 2026, and for smaller groups, December 11, 2026.
3. Disclosure and Recordkeeping: Mutual fund managers must ensure that all disclosures, especially regarding fees, expenses, conflicts of interest, and risk factors, are accurate and consistent with actual practices. The SEC’s 2025 exam priorities emphasize the importance of robust policies and procedures to maintain compliance with these requirements.
4. Timely Regulatory Filings: Managers are responsible for meeting specific annual and periodic filing deadlines, including Forms 13F, 13H, PF, and Schedule 13G. For example, Form PF updates go into effect in March 2025, requiring advisers to file using the amended version after March 12, 2025.
5. Marketing Rule Adherence: The SEC’s expanded Marketing Rule requires clear disclosures in advertising, updated recordkeeping, and compliance with new definitions of what constitutes an advertisement. The SEC continues to monitor and enforce adherence to these standards.
6. Fiduciary and Operational Standards: Fund managers must maintain policies to address fiduciary obligations during periods of market volatility, ensure accurate calculation and allocation of fees, and disclose any conflicts of interest or material risks to investors.

These requirements are part of a broader push by the SEC to modernize mutual fund regulation, enhance investor protections, and ensure that fund managers operate with transparency and accountability.

Understanding the specific compliance updates is only the first step; now, let’s explore how you can effectively adapt and stay ahead of these changes.

What Fund Managers Need to Do to Stay Compliant in 2025

With the SEC extending compliance dates for several major rules and sharpening its examination priorities, U.S. mutual fund managers must adopt a proactive, structured approach to compliance in 2025. Here’s a checklist and best practices tailored to the current regulatory environment.

Action Area	Key Steps for 2025 Compliance
Monitor SEC Rule Changes	Track updates to Names Rule, Forms N-PORT/N-CEN, and other key SEC regulations. Note extended deadlines: Names Rule (June/Dec 2026), N-PORT/N-CEN (Nov 2027/May 2028).
Update Internal Controls	Revise compliance manuals, investment policies, and controls to reflect new SEC mandates on fund naming, risk, and reporting.
Automate Compliance	Implement compliance management software to automate recurring tasks, track deadlines, and centralize documentation for audits.
Enhance Disclosures	Ensure all disclosures (fees, risks, conflicts, ESG) are accurate and updated per SEC requirements.
Strengthen Cybersecurity	Update cybersecurity policies and incident response plans to align with SEC standards for data protection and breach reporting.
Staff Training	Provide regular training on new rules, technology tools, and best practices for compliance and regulatory engagement.
Maintain Records	Keep comprehensive, easily retrievable records of compliance activities, disclosures, and communications for audits or SEC exams.
Continuous Monitoring	Use technology and regular reviews to monitor compliance status, flag exceptions, and address gaps proactively.
Industry & Regulator Engagement	Participate in industry groups (e.g., ICI) and maintain open communication with the SEC to stay ahead of trends and expectations.
Culture of Compliance	Promote transparency and accountability at all levels; leadership should champion compliance initiatives.
Centralized Platforms	Use cloud-based solutions for unified policy management, incident tracking, and reporting across all fund operations.

Also Read: How to Write a Compliance Report: Step-by-Step Guide

While staying proactive is key, it’s equally important to recognize the broader strategic challenges that come with navigating a complex regulatory landscape.

Top Compliance Challenges for Mutual Fund Managers

Mutual fund managers in 2025 are navigating a landscape marked by heightened regulatory scrutiny, rapid digital transformation, and evolving investor expectations. The convergence of these forces presents several strategic compliance challenges that require proactive, innovative responses.

1. Adapting to Regulatory Uncertainty and Change: The US regulatory environment is in flux, with a new administration signaling potential deregulation in some areas while the SEC continues to introduce and enforce new rules.

This uncertainty complicates compliance planning, as fund managers must be ready to adapt quickly to both new requirements and possible rollbacks. Staying agile and maintaining flexible compliance workflows is essential.

2. Keeping Pace with Digital Transformation: The push toward digitalization brings both opportunities and risks. Firms that lag in adopting digital tools face inconsistent compliance practices, limited data access, and increased vulnerability to cyber threats. Embracing cloud-based compliance platforms and leveraging automation are now critical for maintaining operational efficiency and regulatory readiness.

3. Managing Rising Operational Costs: Compliance costs continue to rise, particularly for smaller and mid-sized funds. Increased documentation, due diligence, and reporting requirements. Enhanced disclosure standards—place a disproportionate burden on firms with limited resources. 

Strategic investment in scalable compliance technology can help mitigate these pressures.

4. Cybersecurity and Data Privacy Risks: As mutual fund managers handle more sensitive investor and portfolio data, the risk of cyberattacks and data breaches grows. The SEC’s 2025 priorities include a strong focus on cybersecurity policies and incident response plans. Firms must continually update their security frameworks to safeguard information and ensure business continuity.

5. Evolving Investor Expectations and Transparency: Investors are demanding greater transparency, especially around fees, performance, ESG (Environmental, Social, Governance) factors, and conflicts of interest. Meeting these expectations requires robust internal controls, clear disclosures, and a culture of compliance that extends from the boardroom to daily operations.

Mutual fund managers must balance regulatory agility, technological adoption, cost management, and investor trust. Proactive compliance strategies, investment in modern technology, and a culture of transparency are essential to overcoming these challenges.

Also read: Compliance in Investment Management: How to Navigate Challenges?

Best Practices for Overcoming Compliance Challenges

The following best practices offer a direct, actionable response to the most pressing compliance challenges facing mutual fund managers. Let’s take a look:

• Embed Compliance into Daily Operations: Integrate regulatory tasks like disclosure updates and policy reviews directly into your team’s workflows to avoid last-minute scrambles and missed deadlines.
• Automate Recurring Obligations: Use technology to manage filings, attestations, and policy acknowledgment tracking. Automation reduces manual workload and minimizes human error.
• Link Risk Assessments to Controls: Proactively assess risks such as cybersecurity threats, ESG disclosures, and third-party oversight. Then map those risks to internal controls and response procedures.
• Centralize Policy and Training Management: Keep all policy documents in one place, ensure timely updates, and track staff acknowledgments. Deliver regular training on emerging SEC requirements and your internal standards.
• Log and Resolve Incidents Promptly: Establish a defined process for reporting, escalating, and documenting compliance breaches or exceptions. Early visibility allows faster remediation and better audit outcomes.
• Maintain an Audit-Ready Record Trail: Keep clear, centralized documentation of all compliance activities, from disclosures to internal reviews. This ensures you can respond efficiently during SEC exams or investor inquiries.

To put these best practices into action at scale, fund managers need the right systems in place. That’s where VComply can help you.

How VComply Simplifies Compliance for Mutual Fund Managers

VComply’s cloud-based platform is purpose-built to address these challenges, offering a suite of interconnected modules that automate, centralize, and simplify compliance management for investment firms.

Each module solves a specific operational challenge. Let’s see how:

ComplianceOps for Managing Regulatory Tasks and Deadlines

• Automates recurring compliance requirements like SEC filings, policy attestations, and disclosure reviews
• Assigns responsibilities, sets deadlines, and tracks completion in real time
• Reduces the risk of missed tasks during high-pressure reporting cycles

RiskOps for Proactive Risk and Control Mapping

• Identifies and assesses compliance risks across business lines and third-party relationships
• Maps those risks directly to regulatory requirements and internal controls
• Tracks mitigation steps and maintains full documentation for audit readiness

PolicyOps for Centralized Policy Management

• Manages the full lifecycle of compliance policies, from drafting to distribution and periodic review
• Ensures staff always have access to the most up-to-date policies
• Tracks acknowledgments and automates version control

CaseOps for Incident and Breach Tracking

• Logs compliance breaches, disclosure exceptions, or policy violations in real time
• Automates escalation workflows based on severity and impact
• Maintains a structured audit trail for internal investigations and regulatory reporting

VComply brings structure, visibility, and efficiency to every part of the compliance process so that mutual fund managers can meet compliance challenges with control and confidence. Schedule a free demo to see how.

Wrapping Up

Maintaining compliance in 2025 is more than a regulatory obligation; it’s a foundation for operational integrity and investor confidence. As SEC requirements grow more complex, mutual fund managers who invest in structured processes and reliable technology will be best positioned to meet expectations and respond efficiently to regulatory changes.

VComply offers a practical solution for streamlining compliance workflows, centralizing documentation, and supporting your team with clear, actionable insights. If you’re evaluating ways to strengthen your compliance program and reduce administrative overhead, consider how VComply can help you achieve these goals.

Ready to simplify compliance and safeguard your fund’s reputation? Start your free trial of VComply today!

FAQs

1. What are mutual fund compliance requirements in 2025?

Mutual fund compliance in 2025 includes updated reporting obligations, adherence to the SEC’s Names Rule, accurate disclosures, and timely regulatory filings.

2. What is the SEC’s updated Names Rule?

The SEC’s Names Rule requires that at least 80% of a fund’s assets align with its name, ensuring the fund’s investment strategy matches its branding.

3. How can mutual fund managers stay ahead of compliance deadlines?

Fund managers can stay compliant by automating tasks, revising internal policies, and staying updated on SEC filings and regulatory changes.

4. Why is cybersecurity important for mutual fund compliance in 2025?

Cybersecurity is crucial to protect sensitive investor data and align with SEC standards for data protection and breach reporting.

5. What steps can fund managers take to simplify compliance?

Fund managers can simplify compliance by automating recurring tasks, ensuring accurate disclosures, and maintaining detailed records for audits and regulatory reviews.