The Securities and Exchange Commission Wednesday proposed amendments to public liquidity-related disclosure requirements for certain open-end investment management companies.
Under the proposal, funds would discuss in their annual report the operation and effectiveness of their liquidity risk management program, replacing a pending requirement that funds publicly provide the aggregate liquidity classification profile of their portfolios on Form N-PORT on a quarterly basis.
The Commission adopted the open-end fund liquidity rule in October 2016 in an effort to promote effective liquidity risk management programs in the fund industry
The proposed rule “is another step toward completing the implementation of the 2016 final rule in a manner that protects investors while minimizing unnecessary costs on funds,” said SEC Chairman Jay Clayton.
“I look forward to ongoing engagement with investors, funds and other market participants as we continue enhancing our ability to be effective overseers of the U.S. mutual fund industry.”