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SEC RIN: 3235-AM98 Publication ID: Fall 2023 
Title: Open-End Fund Liquidity Risk Management Programs and Swing Pricing; Form N–PORT Reporting 

The Division is considering recommending that the Commission adopt changes to regulatory requirements relating to open-end fund’s liquidity and dilution management.  The Commission proposed amendments to its current rules for open-end management investment companies ("open-end funds") regarding liquidity risk management programs and swing pricing. The proposed amendments are designed to improve liquidity risk management programs to better prepare funds for stressed conditions and improve transparency in liquidity classifications. The amendments are also designed to mitigate dilution of shareholders’ interests in a fund by requiring any open-end fund, other than a money market fund or exchange-traded fund, to use swing pricing to adjust a fund’s net asset value ("NAV") per share to pass on costs stemming from shareholder purchase or redemption activity to the shareholders engaged in that activity. In addition, to help operationalize the proposed swing pricing requirement, and to improve order processing more generally, the Commission proposed a "hard close" requirement for these funds. Finally, the Commission proposed amendments to reporting and disclosure requirements on Forms N-PORT, N-1A, and N-CEN that apply to certain registered investment companies, including registered open-end funds (other than money market funds), registered closed-end funds, and unit investment trusts. The proposed amendments would require more frequent reporting of monthly portfolio holdings and related information to the Commission and the public, amend certain reported identifiers, and make other amendments to require additional information about funds’ liquidity risk management and use of swing pricing.  

Agency: Securities and Exchange Commission(SEC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 17 CFR 270.22c-1    17 CFR 270.22e-4    17 CFR 270.30b1-9    17 CFR 270.31a-2    17 CFR 274.150    17 CFR 274.101    17 CFR 239.15A    17 CFR 274.11A   
Legal Authority: 15 U.S.C. 80a-22(c)    15 U.S.C. 80a-37(a)    15 U.S.C. 80a-31(a)    15 U.S.C. 80a-35b    15 U.S.C. 80a-6    15 U.S.C. 80a-8    15 U.S.C. 80a-22    15 U.S.C. 80a-24    15 U.S.C. 80a-29    15 U.S.C. 80a-30    15 U.S.C. 80a-33    15 U.S.C. 80a-37    15 U.S.C. 80a-44    15 U.S.C. 80b-6    15 U.S.C. 78j    15 U.S.C. 78m    15 U.S.C. 78o    15 U.S.C. 78w    15 U.S.C. 78ll    15 U.S.C. 77g    15 U.S.C. 77j    15 U.S.C. 77q    15 U.S.C. 77s    15 U.S.C. 77sss    44 U.S.C. 3506    44 U.S.C. 3507   
Legal Deadline:  None
Action Date FR Cite
NPRM  12/16/2022  87 FR 77172   
NPRM Comment Period End  02/14/2023 
Final Action  04/00/2024 
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: Yes 
Agency Contact:
Mykaila DeLesDernier
Senior Counsel, Division of Investment Management
Securities and Exchange Commission
100 F Street NE,
Washington, DC 20549
Phone:202 551-5129