Insights & News

Fund Alert, November 2, 2016
What You Need to Know About the SEC’s New Liquidity Risk Management Rule

November 02, 2016
Client Alert

On October 13, 2016, the U.S. Securities and Exchange Commission (SEC) adopted new Rule 22e-4 under the Investment Company Act of 1940 (1940 Act) to require registered open-end funds, other than money market funds, to adopt and implement written liquidity risk management programs.1  The SEC also adopted related reporting and disclosure requirements.  The action was taken in conjunction with rule and form amendments intended to modernize the reporting and disclosure of information by registered investment companies,2 and rule amendments to permit open-end funds to use swing pricing to effectively pass on the costs stemming from shareholder purchase or redemption activity to the shareholders associated with that activity.3

This Fund Alert describes the key provisions of Rule 22e-4 and related requirements and identifies significant changes from the rule as originally proposed.4

Read the full version here.

Information contained in this publication should not be construed as legal advice or opinion or as a substitute for the advice of counsel. The articles by these authors may have first appeared in other publications. The content provided is for educational and informational purposes for the use of clients and others who may be interested in the subject matter. We recommend that readers seek specific advice from counsel about particular matters of interest.

Copyright © 2016 Stradley Ronon Stevens & Young, LLP. All rights reserved.

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