WASHINGTON (Legal Newsline) — The Securities and Exchange
Commission (SEC) announced this week it will adopt changes to modernize
and enhance the reporting and disclosure of information by registered
investment companies and to enhance liquidity risk management by open-end
These new rules benefit investors and the SEC as it
will provide better information for investors while allowing the commission to
more effectively collect and use data reported by funds. Additionally, the
rules promote effective liquidity risk management.
The new rules come as part of the SEC’s
goal of bettering its regulation of the asset management industry.
“These new rules represent a sweeping change for the
industry by requiring strong transparency provisions and enhanced investor
protections,” said SEC Chairwoman Mary Jo White. “Funds will more effectively
manage liquidity risk and both commission staff and investors will receive
additional and better quality information about fund holdings.”
Under the new rules, registered funds must file a new
monthly portfolio reporting form and a new annual reporting form that will
require census-type information.
Allowed under the new rules is swing pricing, which will let
a fund adjust net asset value in order to pass on to shareholders costs
associated with their trading activity.