Final Rule: Investment Company Liquidity Risk Management ...

SECURITIES AND EXCHANGE COMMISSION. 17 CFR Parts 210, 270, 274. Release Nos. 33- 10233; IC- 32315; File No. S7-16-15. RIN 3235-AL61. Investment Company Liquidity Risk Management Programs AGENCY: Securities and Exchange Commission. ACTION: Final rule. SUMMARY: The Securities and Exchange Commission is adopting new rules, a new form and amendments to a rule and forms designed to promote effective Liquidity risk Management throughout the open-end Investment Company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The amendments also seek to enhance disclosure regarding fund Liquidity and redemption practices. The Commission is adopting new rule 22e-4, which requires each registered open-end Management Investment Company , including open-end exchange-traded funds ( ETFs ) but not including money market funds, to establish a Liquidity risk Management program.

proceeds upon an investor’s redemption, the settlement period for open-end fund redemptions has shortened considerably over the years. There are several reasons for shorter settlement periods, including broker-dealer settlement cycle 8requirements,

Tags:

  Risks, Cycle, Settlement, Liquidity, Liquidity risk, Settlement cycle, The settlement

Information