2026-14007NoticeWallet

Funds to Continue Quick Reports on Liquidity Shortfalls

Published Date: 7/13/2026

Notice

Summary

The SEC is asking to keep collecting info from certain investment funds about big changes in their liquid assets and risk levels using Form N-RN. These funds must report quickly—usually within one business day—when they hit or fix specific financial limits. This update mostly keeps things the same, affecting about 31 reports yearly, with no new costs or deadlines.

Analyzed Economic Effects

5 provisions identified: 1 benefits, 4 costs, 0 mixed.

Funds must file Form N-RN

Registered open-end management investment companies (excluding money market funds), registered closed-end funds, and business development companies must file a non-public Form N-RN when certain liquidity or risk events occur. Compliance with Rule 30b1-10 and Form N-RN is mandatory for all covered funds.

Clear reporting triggers and thresholds

Form N-RN must be filed when more than 15% of an open-end fund's net assets are illiquid investments, when such holdings fall back to less than or equal to 15%, when highly liquid investments fall below the fund's minimum for more than 7 consecutive calendar days, and when a fund breaches the VaR-based limit under rule 18f-4.

One-business-day filing deadline

When one or more triggering events occur, a fund must file Form N-RN within one business day of the occurrence. In certain cases, a fund must file a second Form N-RN when it is no longer in breach of the applicable limit.

Estimated time and dollar burden

The SEC estimates about 31 Form N-RN reports per year on average, with each report taking about 4 hours to prepare (3 hours lawyer + 1 hour programmer) and costing about $2,420 per response. The aggregate estimate is roughly 124 burden hours and $75,020 in total annual time costs.

Reports kept non-public/confidential

Form N-RN reports are filed on a non-public basis and responses to the disclosure requirements will be kept confidential. The SEC states the reports are intended to enhance oversight while maintaining confidentiality.

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Key Dates

Published Date
7/13/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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