08.28.24

SEC Retreats From Swing-Pricing Mandate for Mutual Funds

by: Lydia Beyoud

The U.S. Securities and Exchange Commission (SEC) backed down from a proposal that would have forced many mutual funds to overhaul their pricing models. The original proposal would have imposed swing pricing during periods of high redemptions, making it costlier for investors to cash out when markets are roiled. The measure drew strong opposition from the industry, which warned it could impose heavy burdens on investors saving for their retirements. The SEC instead approved more-frequent disclosures of mutual-fund performance and decided to address heavy redemptions by issuing new guidance on existing liquidity-risk-management rules.

Read the full article on Bloomberg