SEC liquidity rules could punish larger funds

Risk USA: funds that have grown too big for their strategies could be exposed

US Securities and Exchange Commission

The biggest US mutual funds may be adversely impacted by the Securities and Exchange Commission's (SEC) new liquidity risk management rules, asset managers have warned.

"Certainly, fund size is an important [factor] and larger funds would be disadvantaged," said Tilak Lal, chief risk officer at K2 Advisors, a subsidiary of Franklin Templeton, adding: "And I would say they should be."

Lal was speaking on a panel at the Risk USA conference in New York earlier today (November 10).

SEC rule 22-e4

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