U.S. SEC delays compliance date for open-end funds liquidity classification

WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission voted on Wednesday to extend by six months the deadline by which open-end funds must comply with certain elements of the commission’s liquidity risk management program rule.

The new compliance date will provide funds additional time to complete implementation of the final rule’s classification requirement, along with specified other elements that are tied to the classification requirement, the SEC said in a statement.

Other provisions of the rule, including the requirements to adopt a liquidity risk management program and to limit illiquid investments to 15 percent of a fund’s portfolio, will go into effect as originally scheduled, the SEC said.

The SEC adopted the open-end fund liquidity rule in October 2016.

The compliance date for implementation of the classification and classification-related elements of the liquidity rule is June 1, 2019, for larger fund groups, and Dec. 1, 2019, for smaller fund groups, the SEC said.

The other requirements will go into effect as originally scheduled: Dec. 1, 2018, for larger fund groups, and June 1, 2019, for smaller fund groups, it said.

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