SEC Requests Feedback on Money Market Fund Report

Legal & Regulatory Update

SEC Requests Feedback on Money Market Fund Report

December 28, 2020

 

The SEC’s Division of Investment Management is seeking feedback on a report by the President’s Working Group on Financial Markets (PWG) on the effects of the March 2020 market volatility on money market funds and short-term funding markets. The report provides background information on money market funds and prior regulatory reforms, events in the short-term funding markets in March, and potential measures that regulators could consider to improve the resilience of money markets funds and short-term funding markets. The PWG did not endorse any particular approach. 

Potential measures include removing the tie between money market fund liquidity and thresholds for redemption fees and liquidity gates, floating NAVs, swing pricing requirements, and capital buffer requirements, among others. The Director of the SEC’s Division of Investment Management, Dalia Blass, has issued a statement describing the report and requesting feedback on the effectiveness of measures discussed in the report to:

  • Address money market fund structure vulnerabilities that can cause these funds to come under stress and contribute to stress in short-term funding markets;
  • Improve the resilience and functioning of short-term funding markets; and
  • Reduce the likelihood that interventions will be needed to prevent or halt future money market fund runs and/or address stresses in short-term funding markets.

See Staff Statement on the President’s Working Group on Money Market Funds (Dec. 23, 2020).

 

TAGS: COVID-19, Coronavirus, Dalia Blass, Money Market Fund, SEC Investment Management

Latest Edition

Issue_October2021.jpgRead our Latest Print Edition

DOWNLOAD

Regulatory Proposals

See Upcoming Regulatory Proposals

Compliance Dates

See Upcoming Compliance Dates

IACCP Certification & Training

See the 2021 Training Schedule

Events

Compliance-Workshop_2021_Box_250x250.jpg

Box_Partner_ACA_250x250.jpg

Box_DEI_250x250.png

Box_DACFP_250x250.jpg

Box_Snapshot2021_250x250.jpg

Videos

SEC COMMISSIONER PEIRCE KEYNOTE AT 2021 IAA COMPLIANCE CONFERENCE–In her keynote conversation with IAA President & CEO Karen Barr, SEC. Commissioner Hester Peirce discussed her concerns about recent agency initiatives involving climate change and ESG initiatives and other challenges facing the SEC.

MORE IAA VIDEOS – including sessions with SEC officials at our 2021 Compliance Conference and videos on Diversity, Equity & Inclusion – are on our VIDEOS page.