SEC Wants Investors to Understand Funds Better

"We're not clear that the benefits of mandating the additional disclosure would outweigh the harm that could be caused," Wloszczyna says. "But we'll look into it."

Quarterly reporting with a 60-day grace period may not sound like much of an opportunity for front-running, but most funds -- especially the larger ones -- do take quite a long time to build up and wind down positions.

Pitt has downplayed that notion, saying that more than 70% of funds already report quarterly holdings to databases, such as Morningstar's.

And just in case you're wondering, the big "so what" element of the proposal simply mandates that shareholder reports include the manager's assessment (in the form of a letter or column) of the fund's performance. While virtually all funds include a statement from the manager in their annual and semiannual shareholder reports, this proposal simply codifies that practice.

The public will have 30 days to comment on the proposals before the SEC decides whether to adopt or change them.