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SEC Rule 22c-1

Governs how registered investment companies must price their redeemable securities (e.g., mutual fund shares) when those securities are sold, redeemed, or repurchased. Its central goal is to ensure fair treatment of investors by requiring that transactions occur at prices based on the current net asset value (NAV) next calculated after an order is received.

Rule Overview

Jurisdiction: United States

Regulator: SEC

Topic: Investor Protection

Overview
Latest News
Further Reading

The rule allows price adjustments for securities issued in the context of mergers or asset acquisitions under specific conditions.

To mitigate dilution from large purchase/redemption activity open-end funds (excluding money market funds and ETFs) may use swing pricing to adjust their NAV.

The fund’s board of directors is responsible for setting and approving the timing of NAV calculations and any changes.

Latest News More on SEC Rule 22c-1 

Further Reading

Amendments to Rules Governing Pricing of Mutual Fund Shares Go to https://www.sec.gov/rules-regulations/2003/12/amendments-rules-governing-pricing-mutual-fund-shares Clifford Chance SEC Rule 22c-1 proposal analysis Go to https://www.cliffordchance.com/content/dam/cliffordchance/briefings/2022/11/New%20SEC%20Rule%20Proposal%20Seeks%20To%20Mandate%20Swing%20Pricing%20And%20Impose%20A%20Hard%20Close%20For%20Mutual%20Funds.pdf NASD NTM 03*50 Go to https://www.finra.org/rules-guidance/notices/03-50