SEC Modifies Certain Liquidity Rule Compliance Dates and Issues New FAQs

The SEC extended by six months certain aspects of Rule 22e-4 (Liquidity Risk Management Rule), Form N-PORT and Form N-LIQUID

The extensions apply to (i) the portfolio classification requirements, where filers are to categorize fund holdings into four liquidity “buckets“; (ii) the Highly Liquid Investment Minimum (HLIM) rule; (iii) fund board initial approval of a liquidity risk management program (LRMP) (without the classification or HLIM) and annual review requirement; and (iv) the liquidityrelated reporting requirements of Form N-PORT (items B.7, B.8, and C.7) and N-LIQUID (Part D). The new compliance date is June 1, 2019 for larger fund groups (greater than $1 billion in assets) and December 1, 2019 for smaller fund groups.

Other parts of the Rule 22e-4, including the requirement to adopt a LRMP (without the classification or HLIM) and the requirement to limit illiquid investments to 15% of the fund’s portfolio, will remain on schedule with a compliance date of December 1, 2018 for larger fund groups and June 1, 2019 for smaller fund groups.

You can read the interim final rule here:

Want to read more?

Fill in the form below to download the full article.

Loading form...