Home Liquidity Risk Management Program Rule Resource Center
Liquidity Risk Management Program Rule Resource Center
The SEC has adopted a liquidity risk management program rule and related reporting and disclosure requirements for mutual funds (except for money market funds) and open-end ETFs. The SEC subsequently extended the compliance dates for certain of these new requirements. And, in June 2018, the SEC amended certain liquidity disclosures. Generally speaking, funds will have to comply with these new rule requirements by December 2018 or June 2019, depending on the requirement. Implementation and ongoing administration of a fund’s liquidity risk management program will require coordination among many functions or groups within, and potentially outside, a fund complex—including portfolio management, trading, risk, legal, compliance, operations, the fund board, and certain third parties (such as sub-advisers, fund administrators, and data providers).
This resource center is designed to assist members in understanding these new requirements, implementing their liquidity risk management programs, and administering them going forward. Contact Matt Thornton (matt.thornton@ici.org or 202-371-5406) for more information or if you need further assistance.
SEC Engagement
ICI continues to engage with the SEC on this topic and has submitted the following:
- ICI Comment Letter on the SEC's Liquidity Disclosure Proposal (pdf)
- ICI Letter to SEC Requesting Liquidity Rule Compliance Delay
- ICI Letter to SEC Chairman Clayton on Liquidity and Fund Reporting Rules
Related Regulatory and ICI Initiatives
The SEC’s adoption of the liquidity rule coincided with its adoption of new enhanced fund reporting requirements for registered funds and optional swing pricing rule amendments for mutual funds. Visit our Investment Company Reporting Modernization Resource Center and Swing Pricing Resource Center for more information on these topics.
Financial Stability Resources
ICI has addressed the subject of fund liquidity extensively in response to inquiries and papers from other regulatory bodies. Visit our Financial Stability Resource Center for material related to liquidity and other topics.
