How and Why to File Form N-LIQUID

WHAT HAPPENED?

The ripple-effects of the COVID-19 pandemic continue to spread, causing overall market volatility and even market closings in some countries. These fluctuating circumstances may affect funds’ liquidity, triggering some of the SEC’s liquidity risk management initiatives. One requirement of these provisions is the filing of Form N-LIQUID.

ABOUT FORM N-LIQUID

A fund is required to file Form N-LIQUID if one of three liquidity events occurs:

  1. The level of a fund’s illiquid investments exceeds 15% of its net assets;
  2. The level of a fund’s illiquid investments falls to or below 15% of net assets (following the event of 1. above); or
  3. Highly illiquid investments that are assets fall below its set highly liquid investment minimum for more than seven days.

If any of the above happen, the fund must file the Form within one business day of the event.

WHAT DOES THIS MEAN FOR ME?

If your fund is required to file Form N-LIQUID, a quick turn-around time is required. FilePoint has experience with this Form and is prepared to assist funds who need to file. We have streamlined the N-LIQUID process with a fillable template, facilitating an automated preparation of the filing.

Reach out to FilePoint directly at file@filepoint.com with questions or to request filing assistance.

By | 2020-03-24T13:12:38+00:00 March 24th, 2020|Disaster Recovery and Incident Response, EDGAR, FilePoint® Flash Reports|