SEC Extends Compliance Deadline for Open-End Fund Liquidity Risk Management Requirements

The SEC granted open-end funds additional time to comply with the liquidity risk management program's classification requirements under Investment Company Act Rule 22e-4. The deadline for open-end funds, including mutual funds and exchange-traded funds, was changed to June 1, 2019, for larger fund groups, and December 1, 2019, for smaller fund groups.

The SEC adopted the open-end fund liquidity rule in October 2016 and originally projected that most funds would comply with requirements by December 1, 2018. The final rule will impose additional liquidity risk requirements on open-end funds. In conjunction with this extension, SEC staff also issued an additional set of FAQs related to the liquidity rule, focusing on questions that have arisen with respect to the liquidity classification process.