Birdthistle Speech Highlights Recently Proposed Open-End Fund Rules

In a speech at the 2022 SEC Regulation Outside the United States Conference, Investment Management Division Director William Birdthistle delivered remarks on international regulatory cooperation and developments in the Division of Investment Management. While Birdthistle highlighted international issues such as the war in Ukraine, challenges with MiFID II, and investment product innovation, he also mentioned the recent rule proposal covering changes to open-end mutual funds. That proposal would make changes to liquidity risk management programs and mandate swing pricing for certain open-end funds. In his remarks, Birdthistle stated, that currently, no U.S. fund has employed swing pricing. He noted, however, “comparing the March 2020 experience here in the United States to the experience of some funds in Europe, we are able to glean potential lessons for our own regulatory regime.” On disclosure more broadly, Birdthistle remarked “[i]n an increasingly complex world, it’s increasingly important that busy investors receive disclosure that is not only accurate, but also concise and useful for making decisions.”

Click here to read Birdthistle’s speech on international regulatory developments.