SEC Adopts Changes to Public Liquidity Risk Management Disclosure
SEC adopted amendments to public liquidity-related disclosure requirements for certain open-end funds. The amendments will become effective sixty days after they are published in the Federal Register.
Under the amendments, funds would discuss in their annual or semi-annual shareholder report the operation and effectiveness of their liquidity risk management programs. This requirement replaces a pending requirement that funds publicly provide a quantitative end-of-period snapshot of historic aggregate liquidity classification data for their portfolios on Form N-PORT. With respect to the N-PORT classification reporting, the amendments to Form N-PORT (the form that funds will file each month with portfolio holdings information) will provide funds the flexibility to split their portfolio holdings into more than one classification category in three specified circumstances when split reporting equally or more accurately reflects the liquidity of the investment or eases cost burdens. Finally, Form N-PORT will require that funds disclose their holdings of cash and cash equivalents not reported elsewhere on the Form.
SEC adopted the open-end fund liquidity rule in October 2016 to promote effective liquidity risk management programs in the fund industry. Management of liquidity risk is important to funds’ ability to meet their statutory obligation—and their investors’ expectations—regarding redeemability of their shares. Since adoption of the 2016 rule, staff has engaged in extensive outreach to identify potential issues associated with the effective implementation of the rule. This outreach resulted in a series of actions taken by SEC. In addition to this rule, SEC previously adopted a rule that extends by six months the compliance date for the classification and classification-related elements of the liquidity rule and related reporting requirements. The staff has also issued guidance intended to assist funds in complying with the liquidity rule’s requirements. These actions aim to provide investors with accessible and useful information about liquidity risk management of the funds they hold while providing sufficient time for funds to implement the requirement to classify their holdings in an efficient and effective manner.
Related Links
Keywords: Americas, US, Securities, Reporting, Form N-Port, Disclosures, Liquidity Risk, SEC
Previous Article
SEC Adopts Inline XBRL for Tagged Data for Companies and FundsRelated Articles
|
News
BCBS Publishes Results of Survey on Proportionality in Bank RegulationBCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.
March 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy SwapsUS Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.
March 19, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Third Update for March 2019EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.
March 15, 2019
WebPage
Regulatory News
|
|
News
OCC Updates Recovery Planning Booklet of the Comptroller's HandbookOCC updated the Recovery Planning booklet of the Comptroller’s Handbook.
March 15, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Report on Convergence of Supervisory Practices Across EUEBA published annual report on the convergence of supervisory practices in EU.
March 14, 2019
WebPage
Regulatory News
|
|
News
CPMI-IOSCO Publish Update to Level 1 Assessment of PFMI ImplementationCPMI and IOSCO jointly updated the Level 1 Assessment Online Tracker on monitoring of the implementation of the Principles for financial market infrastructures (PFMI).
March 14, 2019
WebPage
Regulatory News
|
|
News
Agustín Carstens of BIS Speaks About New Role of Central BanksWhile speaking at the 20th anniversary conference of the Financial Stability Institute (FSI), Agustín Carstens, the General Manager of BIS, highlighted the need for regulatory actions in light of the continued evolution of financial technology.
March 14, 2019
WebPage
Regulatory News
|
|
News
ESMA Analyzes Impact of Regtech and Suptech for Markets and RegulatorsESMA published the results of its analysis of the regulatory and supervisory technologies—also known as regtech and suptech—being developed in response to various demand and supply drivers in the financial sector.
March 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Policy Statement on Group Supervision Under Solvency IIPRA published a policy statement (PS9/19) that provides feedback on responses to the consultation paper CP15/18 and the final supervisory statement SS9/15 (Appendix) on group supervision under Solvency II.
March 14, 2019
WebPage
Regulatory News
|
|
News
ECB Announces Start Date for Euro Short-Term RateECB announced that it will start publishing the euro short-term rate (€STR) as of October 02, 2019, reflecting the trading activity of October 01, 2019.
March 14, 2019
WebPage
Regulatory News
|
