SEC Swing Pricing Proposal Shelved | Fred Teufel Insights
VIGILANT INSIGHTS
Introduction
The SEC adopted additional requirements on August 28th, 2024, related to Forms N-PORT and N-CEN.
Form N-PORTs must be filed monthly instead of quarterly and provided to the public 60 days after the end of each month. This will be effective November 17th, 2025.
However, their inaction on the controversial Swing Pricing Rule was equally newsworthy, as the SEC stated that they will not be adopting those proposed amendments at this time.
Vigilant Director, Fred Teufel, CPA, MBA, CGMA, provided some background on this topic in an article by Ignites.
Fred Teufel Insights
The Proposed Rule for Swing Pricing received significant backlash from the industry; it could easily have been one of the most controversial Rules proposed so far, according to Fred.
While it was expected that the Swing Pricing Proposals would be addressed in the announcement by the SEC, Fred implied that it would have been more surprising if they adopted the Rule.
It is important to note however that the proposal is not gone completely; he warns that future regulatory action may still occur if a situation of mass redemption was to occur with resulting liquidity failures.
Compliance Requirements for Form N-PORT and Form N-CEN Reporting
- Form N-Port will be filed within 30 days of the end of each month.
- Form N-CEN amendments will require Open-End Funds subject to Liquidity Risk Management Programs to report specific information about their Service Providers used to meet the requirements.
- The effective date will be November 17th, 2025, for fund groups with net assets of $1 billion or more; fund groups with less than $1 billion have an effective date of May 18th, 2026.
Vigilant’s Conclusion
While the Swing Pricing Rule is currently shelved, Firms will need to assess the additional resources that may be required to comply with the Rule Amendments adopted on August 28th, 2024.
Vigilant is prepared to offer guidance to Firms trying to navigate this incredibly dynamic regulatory environment.
We provide Compliance Support and insights, amongst a host of other Compliance Solutions.
Reach out to us today with any questions you may have.