On Thursday, October 13, 2016, the U.S. Securities and Exchange Commission (SEC) published its final Liquidity Risk Management rule (Rule 22e-4). The Rule is meant to provide the SEC and investors with additional tools and information to monitor the ability of an open-end mutual fund or exchange-traded fund (ETF) to meet redemption requests without significantly diluting remaining shareholders.
In this Point of View, Implications of the SEC’s New Liquidity Rule, we explain and provide our observations of the final new rule and its potential operational and strategic implications for the industry.
