New York partner Stacy Louizos was quoted in Ignites in an article titled, "Liquidity Programs Have 'Good Start,' but Long Way to Go."
The article discussed the extensive and rigorous requirements the SEC has proposed aimed at reducing the risk that funds won’t be able to meet redemptions during periods of heightened investor selling.
Stacy said that the new rule proposal requires that each fund create its own liquidity risk management program.
“I don’t think there’s been as extensive a rule proposal since Rule 38a-1,” she said, referring to the so-called compliance rule that took effect in 2004 and required funds to adopt compliance programs and designate chief compliance officers.
While most fund firms have liquidity programs in place that use some of the types of analysis included in the new rule proposal, the programs are not at all standardized, she added.
Read, "Liquidity Programs Have 'Good Start,' but Long Way to Go" here. (Subscription required)