Regulatory Alerts2016-11-18 | 2016-25348Added
Investment Company Liquidity Risk Management Programs
The Securities and Exchange Commission adopted new rules requiring registered open-end investment companies to establish comprehensive liquidity risk management programs to mitigate redemption risks and shareholder dilution. The regulations mandate that funds maintain a minimum level of highly liquid assets, limit illiquid holdings, and implement specific reporting and disclosure protocols regarding portfolio liquidity. These requirements apply to open-end funds and ETFs, while explicitly excluding money market funds from the core program obligations.
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