In the Margins

SEC proposal would allow 'swing pricing'

September 23, 2015

By InvestmentNews

The Securities and Exchange Commission has proposed rules designed to ensure mutual funds and exchange-traded funds can redeem shares when investors want to exit during times of market turmoil. The rules would require funds to develop liquidity risk management programs, maintain a three-day liquid asset minimum and assess the liquidity of their holdings. They also would allow funds to implement "swing pricing." This means they could charge higher prices to shareholders making large purchases or redemptions above a certain limit, which in turn would force shareholders involved in the move to bear more of the transaction costs. Read the original article from IN.

 

 

Most Read

Top of the Agenda - Regulatory
In-person voting relief extended through year-end

Mutual fund boards can continue conducting business—including voting on contract approvals and renewals and other important matters—virtually through the end of 2020, according to the Securities ...

Top of the Agenda - Governance
Recruiting in the time of coronavirus

Mutual fund boards seem well on their way to mastering the art of conducting business virtually, but one area that may still be a challenge during ...