SEC Proposes Liquidity Management Rules for Open-End and Exchange-Traded Funds

Skadden, Arps, Slate, Meagher & Flom LLP

Kenneth E. Burdon Kevin T. Hardy Michael K. Hoffman Thomas A. DeCapo

On September 22, 2015, the SEC voted to propose a new rule as well as amendments to existing rules under the Investment Company Act of 1940 to promote effective liquidity risk management for open-end funds. The amendments also would allow such funds to use “swing pricing” and enhance disclosure regarding fund liquidity and redemption practices.

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