Kristin H. Ives
Partner
Client Alert
Swing Pricing Strikes Out Again in Recent SEC Rulemaking
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The U.S. Securities and Exchange Commission (SEC), in a 3-2 vote, adopted amendments to fund reporting requirements on Form N-PORT and Form N-CEN and provided guidance on liquidity risk management programs (LRMPs) on August 28 (Adopting Release).1 Among other things, the amendments increase the filing and publication frequency of reporting information for funds filing on Form N-PORT and require funds filing on Form N-CEN to provide information about liquidity classification service providers.2 In connection with these amendments, the SEC did not proceed with adopting proposed changes to require mandatory swing pricing or impose a “hard close” cut-off time on when investors can buy and sell their funds (Proposing Release), consistent with comment letters from Stradley Ronon and many others on the proposal.3
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1 Form N-PORT and Form N-CEN Reporting; Guidance on Open-End Fund Liquidity Risk Management Programs, Release No. IC-35308 (August 28, 2024).
2 For the Form N-PORT requirements, the term “fund” refers to registered open-end funds, registered closed-end funds and exchange-traded funds (ETFs) organized as unit investment trusts and excluding money market funds and small business investment companies. For the Form N-CEN requirements, the term “fund” refers to the foregoing funds with the addition of money market funds, small business investment companies and registered unit investment trusts. See Adopting Release
at 4.
3 Open-End Fund Liquidity Risk Management Programs and Swing Pricing; Form N-PORT Reporting, Release No. IC-34746 (November 2, 2022). See our previous client alert, SEC Proposes Extensive Changes to Open-End Fund Liquidity Framework (November 30, 2022) and Comment Letter of Stradley Ronon Stevens & Young, LLP (February 14, 2023).
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.
