New, sweeping SEC proposals aimed at enhancing the liquidity risk management practices of mutual funds and ETFs have the asset management industry greatly concerned about unintended consequences affecting their businesses.

The SEC's five-member board unanimously voted last week to address criticism that its rules designed to oversee the ever-evolving U.S. fund industry are outdated. This comes after warnings from both the Federal Reserve and the International Monetary Fund that some funds could struggle to meet investor redemptions in a time of market turmoil, Bloomberg reports.

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