In late 2023, the Financial Stability Board and the International Organization of Securities Commissions updated a 2017 guidance that said open-end funds should be required to implement liquidity management tools like swing pricing.
In an Ignites article, asset management partner Mike Doherty said that “the new recommendations focus more on the outcome of how to avoid the first-mover advantage, prevent runs and impose the cost of redemption on the leaving investors.” This differs from the 2017 guidance, which focuses more on how each open-end fund should get there, he said.
The new recommendations are in part a result of public feedback, including feedback from U.S. asset managers that face the prospect of mandatory swing pricing, Mike said.
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