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Protecting Your Investment Funds

Swing PricingSECRegulated Funds
SEC

As someone saving for retirement, you likely know there are many ways to invest your money, including mutual funds and ETFs. Unfortunately, new rules proposed by the Securities and Exchange Commission (SEC) might cause problems for these products. They would likely result in fewer options for retirement savings, lower investment returns, delays in transactions, added costs, and an uneven playing field for investors. That would be bad news for retirement savers like you. 

Here are the worrying changes the SEC is trying to make:

Swing Pricing: On days when funds have a lot of money flowing in, investors would be charged a higher price than normal to invest. On days when funds have money flowing out, investors would receive a lower price than normal when selling their shares. These price changes could discourage people from investing in mutual funds because it's uncertain when or by how much their prices might change.

Hard Close: Funds wouldn't be able to accept orders from your broker or your retirement plan after 4 p.m. ET—even if you submitted your order before then. So, if you want to sell some of your shares, you might not know the sale price until the next day. The rule would unfairly make it difficult for investors living in western time zones to receive same-day pricing.

Liquidity Risk Management: How funds measure their liquidity—or ability to sell their investments—would change significantly. Together with existing requirements, this would force some large, popular funds to close or not work as well.

The SEC says these rules will help protect shareholders. However, top economists tell us their reasons don’t hold up.  

Since about 63 percent of 401(k) plan assets are in mutual funds, these rules could really hurt everyday Americans trying to save for retirement.

It's vital for investors to join forces and speak up for themselves and each other to protect their retirement savings. Secure Financial Future is dedicated to safeguarding the interests of investors and ensuring a promising retirement for all. Join us and together, we can make a difference and protect our financial futures.