New Rules, Proposed Rules, Guidance and Alerts -

PROPOSED RULES -

SEC Proposes Changes to Fund Liquidity Disclosure Requirements -

On March 14, 2018, the SEC issued proposed amendments to the disclosure requirements concerning certain fund liquidity information. Fund liquidity reporting relates to new Rule 22e-4 under the Investment Company Act of 1940, as amended (the Liquidity Rule), which requires each fund to adopt and implement a written liquidity risk management (LRM) program reasonably designed to assess and manage the fund’s liquidity risk. A fund’s LRM program must include certain components, including, among other things, that a fund classify the liquidity of each portfolio investment into one of four categories (or “buckets”): highly liquid investments, moderately liquid investments, less liquid investments and illiquid investments.