The US Securities and Exchange Commission (SEC) has proposed amendments to its forms “designed to improve the reporting and disclosure of liquidity information by registered open-end investment companies”.

In the proposing release, the SEC states: “(T)his revised approach is designed to provide accessible and useful disclosure about liquidity risk management to investors, with appropriate context, so that investors may understand its nature and relevance to their investments.”  The SEC has proposed adding a new requirement for funds to “briefly discuss the operation and effectiveness of the [f]und’s liquidity risk management program during the most recently completed fiscal year.” It has also proposed making certain changes to the liquidity data reported on Form N-PORT that would allow funds the option of selecting multiple liquidity classifications for a single position under certain circumstances. The SEC has also proposed new requirements for registrants to report cash and cash equivalents.  Comments on these proposed requirements are due by May 18, 2018. 

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