With last month’s deadline to comment on the SEC’s proposed limits on funds’ use of derivatives now passed, asset managers aren’t the only ones preparing in advance for a final ruling.
Wealth managers are also bracing for guidelines that would require funds to restrict their use of derivatives to an exposure-based limit of 150% of net assets. Alternatively, some funds might be allowed to follow a risk-based limit of 300% of total assets, reports FA-IQ’s sister publication, Ignites.