Industry Has More to Do on Liquidity-Risk Reporting
Recent amendments to public liquidity-related disclosure requirements could impact reporting efforts for some funds. And there may be more updates around the corner.
The Securities and Exchange Commission (SEC) recently adopted amendments to public liquidity-related disclosure requirements for certain open-end funds which state that funds would discuss in their annual or semi-annual shareholder report the operation and effectiveness of their liquidity risk management programs. While this 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, it may not be the end of the subject.
In this MarketsMedia article, Erik DiGiacomo, Managing Director and Global Head of Broadridge Professional Services, weighs in on the topic, and how this and future amendments could impact funds already working to meet the original monthly calculation requirement.