SEC Proposes Amendments To Open-End Fund Liquidity Reporting Requirements

The SEC proposed amendments to its rules governing liquidity risk disclosure requirements for open-end funds. The rules were initially adopted in October 2016.

The amendments would require a fund to include in its annual report a narrative discussion of the operation and effectiveness of its liquidity risk management program. This requirement would replace the planned requirement for a firm to publicly disclose aggregate liquidity classification information about their portfolios on a quarterly basis on Form N-PORT. The SEC also proposed amendments that would change the information reported via Form N-PORT, including (i) allowing funds to report a single portfolio holding under multiple liquidity classification categories in certain...