SEC Keeps Foreign Asset Rule Rolling Smoothly
Published Date: 12/12/2025
Notice
Summary
The SEC wants to keep the rules that help investment funds safely store their foreign assets with trusted banks. Funds and their advisers must get risk reports and have contracts ensuring ongoing risk checks. This update keeps protections strong without adding new costs or deadlines.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 4 costs, 0 mixed.
Estimated Total Annual Compliance Burden
The SEC estimates the total annual hour burden for all collection requirements of Rule 17f-7 is 151,152 hours and the total internal cost to the industry is approximately $49,083,792 per year.
Per-Custodian Workloads and Costs Estimated
The SEC estimates there are about 87 global custodians; each custodian will average 4 responses per year, each response taking 260 hours (1,040 hours per custodian annually), totaling 90,480 hours and an estimated $25,967,760 in internal cost for those custodians annually.
Funds May Use Vetted Foreign Depositories
Rule 17f-7 permits a fund, under certain conditions, to maintain its foreign assets with an eligible securities depository that meets specified minimum standards. The rule assigns responsibilities to the fund’s primary custodian and investment adviser to ensure ongoing safeguards for those foreign custody arrangements.
Custodians Must Provide Risk Analyses and Monitoring
Under Rule 17f-7, a fund or its adviser must receive from the primary custodian (or its agent) an initial risk analysis of the foreign depository arrangements, and the fund’s contract with its primary custodian must state that the custodian will monitor risks and promptly notify the fund or adviser of material changes. Primary and other custodians must agree to exercise at least reasonable care, prudence, and diligence.
Information Provided Under Rule Is Not Confidential
The SEC states that the information provided under Rule 17f-7 will not be kept confidential, meaning materials submitted under the rule may be publicly accessible or treated as non-confidential records.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
Previous / Next Documents
Previous: 2025-22649, Amending Over-the-Counter Monograph M020: Sunscreen Drug Products for Over-the-Counter Human Use
The FDA is proposing a change to sunscreen rules to allow a new ingredient called bemotrizinol at up to 6% in over-the-counter sunscreens. This means sunscreen makers can use this ingredient once the rule is final, helping improve sun protection options. People and companies should send their thoughts by January 26, 2026, so the FDA can decide soon.
Next: 2025-22651, In the Matter of SHINE Technologies, LLC; SHINE Medical Isotope Production Facility; Extension of Latest Date for Completion of Construction
SHINE Technologies got the green light to take more time building their Medical Isotope Production Facility in Wisconsin. The deadline to finish construction has been pushed from the end of 2025 to the end of 2029, giving them four extra years to get everything done right. This change mainly affects SHINE and the NRC, with no new costs announced yet.