These amendments require funds to provide additional information on their redemption procedures, including the number of days following the receipt of shareholder redemption requests in which the fund reasonably expects to pay redemption proceeds to redeeming shareholders. In addition, funds are required to describe methods used to meet redemption requests in stressed and non-stressed market conditions.

The amendments were made as part of an omnibus effort by the SEC to modernize investment company reporting. To read more about the changes, see this previous blog post and the published Final Rule.

The compliance dates for new regulations regarding the disclosure of securities lending activities and swing pricing for Form N-1A will occur later this year and next year, respectively. We will keep you apprised of all changes to filing forms as they become mandatory and applicable.

Sources

Investment Company Liquidity Risk Management Programs (Release Nos. 33-10233; IC-32315) (www.sec.gov)

SEC Adopts Rules to Modernize Information Reported by Funds, Require Liquidity Risk Management Programs, and Permit Swing Pricing (www.sec.gov)