Week InAdvance: January 11, 2016

Comments on the Securities and Exchange Commission's plan to protect investors during periods of market stress are due on Wednesday, January 13th. The proposed rule would require funds to maintain a cushion of cash or cash-equivalent assets that could be sold within three days and let firms impose charges on investors who seek to cash out when withdrawals are elevated. It also would require funds to disclose how many days it would take them to sell all of their assets at a fair price. Critics say the plan could impede investment strategies. The SEC released its plan after the Federal Reserve and International Monetary Fund warned that funds with riskier holdings could struggle to return cash to investors during a surge in redemption demands.

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