Joot Blog

Stay up to date with perspectives, news and updates pertaining to investment management technology, legal, compliance and more.

The Liquidity Rule Finally Takes Shape!

Jul 13, 2018 8:54:29 AM / by Bo J. Howell posted in Form N-1A, Form N-PORT, Investment Advisers, Liquidity, Liquidity classifications, Rule 22e-4, SEC Updates, Service Providers, Shareholder reports, 1940 Act, Directors/Trustees, Disclosure

In May, we discussed eight things that you needed to know about the liquidity rule in this article. At that time, we noted that part of the rule was due to take effect in December 2018 for large fund families or June 2019 for smaller fund families. The parts that were delayed until 2019 included the liquidity classifications (i.e., the buckets) and the highly liquid minimum requirement.  More importantly, our third point was that the SEC would have more changes to the liquidity rule in 2018.

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8 Things You Need to Know about the Liquidity Rule

May 11, 2018 4:30:33 AM / by Bo J. Howell posted in Liquidity, Regulatory Events, Rule 22e-1, SEC, SEC Rule, SEC Updates, Service Providers, 1940 Act, Compliance, Directors/Trustees

1. Its name.

Most people simply refer to the rule as the “liquidity rule”, but its technical name is Rule 22e-4: Investment Company Liquidity Risk Management Programs. If the rule survives in any meaningful form, we should start a contest on whether the industry keeps calling it the liquidity rule or refers to it as Rule 22e-4. Think of Rule 38a-1 under the Investment Company Act. Some people may refer to it as the “compliance rule”, but most simply call it Rule 38a-1.

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Starting a Compliance Program

Apr 1, 2018 10:14:33 PM / by Bo J. Howell posted in Investment Advisers, SEC Examinations, 1940 Act, Advisers Act, Compliance

In January 2018, The SEC’s Fort Worth regional office held a teleconference that summarized the SEC’s 2017 exam findings and its focus areas for 2018. The staff noted that some of the common weaknesses in compliance programs for investment advisers include:

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The SEC is Nervous About Options

Mar 19, 2018 10:52:54 PM / by Bo J. Howell posted in 1933 Act, Investment Advisers, LJM Fund, Options, SEC Updates, 1940 Act, Derivatives, Directors/Trustees

Why is the SEC nervous?

On February 23, 2018, Commissioner Kara M. Stein gave a speech at SEC Speaks in Washington, DC. During the speech, Commissioner Stein raised broad ethical and economic considerations regarding the rapid advances in financial product innovation, which appears to be accelerating as financial firms increasingly use technology to expand their product line and deepen their reach into retail markets.

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