News | 03.25.20
SEC Gives Relief to Mutual Funds Facing Redemption Issues
Mutual funds facing stress from the market turmoil caused by coronavirus will be able to tap their parent asset-management companies and other affiliates for funding under relief announced by the SEC, which is effective until at least June 30. Funds that take advantage of the relief must disclose on their websites when they use the tool for the first time. The SEC has also delayed the registration filing deadlines for managers and registered advisors, and told them they won’t necessarily be subject to staff examinations should they take longer than usual to file. In a March 19 letter, meanwhile, the SEC asked managers if they were prepared for staffing disruptions. The regulators has also begun requesting phone calls with investment advisors to ask questions about “any liquidity issues, counterparty issues, changes to investment strategies, investor flows, as well as general market color and concerns."
Read the full article on Wall Street Journal