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SEC proposes amendments to liquidity disclosure requirements for investment companies

  • SEC (US Securities and Exchange Commission) Image

Mar 15, 2018

The SEC has issued a proposed rule, “Investment Company Liquidity Disclosure.”

The proposed rule would “improve the reporting and disclosure of liquidity information by registered open-end investment companies.” Specifically, the proposal would:

  • Require funds to “disclose information about the operation and effectiveness of their liquidity risk management program in their annual reports to shareholders.”
  • Remove the requirement in Form N-PORT related to the disclosure of “aggregate liquidity classification information about [a fund’s] portfolios.”
  • Amend Form N-PORT to “allow funds classifying the liquidity of their investments pursuant to their liquidity risk management programs required by rule 22e-4 under the Investment Company Act of 1940 to report on Form N-PORT multiple liquidity classification categories for a single position under certain specified circumstances.”
  • Require “funds and other registrants [to] report their holdings of cash and cash equivalents” in Form N-PORT.

Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register. For more information, see the press release and proposed rule on the SEC’s Web site.

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