SEC Requests Comment on Money Market Fund Report
February 10, 2021
The SEC is requesting public comment on potential reforms for money market funds that were discussed in a report by the President’s Working Group on Financial Markets (PWG). As previously reported in IAA Today, former Director of the SEC’s Division of Investment Management, Dalia Blass, issued a statement in late December also seeking feedback on the report. The PWG report describes the outflows in March 2020 from prime and tax-exempt money market funds, steps taken to support short-term funding markets despite previous money market fund reform efforts, and potential reform measures.
Comments are requested on the following:
- The potential measures discussed in the PWG report, “both individually and in combination”;
- The effectiveness of earlier money market fund reforms “and the effectiveness of implementing policy measures described in the [r]eport in addition to, or in place of, previously-enacted reforms”;
- The effectiveness of measures in:
- Addressing money market funds’ structural vulnerabilities that can contribute to stress in short-term funding markets;
- Improving the resilience and functions of short-term funding markets; and
- Reducing the likelihood that official interventions will be needed to address money market fund runs, or stresses in short-term funding markets.
- Potential impacts on stakeholders, including money market fund investors, fund managers, and issuers of short-term debt; and
- Other approaches for improving the resilience of money market funds and short-term funding markets.
Comments are requested 60 days after publication of the release in the Federal Register. After the comment period, the SEC expects to hold discussions with stakeholders on options and related comments.
See Request for Comment on Potential Money Market Fund Reform Measures in President’s Working Group Report (Feb. 4, 2021).
TAGS: COVID-19, Coronavirus, Dalia Blass, Money Market Fund, SEC Investment Management