IOSCO Calls for More Regulation of Money Market Funds; Majority of SEC Commissioners Object

more+
less-

On October 9, 2012, the International Organization of Securities Commissions (“IOSCO”) released a final report calling for additional regulation of money market funds (“MMFs”), including options for a floating NAVs, NAV buffers and liquidity fees.

The Financial Stability Board (FSB), established by the heads of state of the “Group of 20,” considers MMFs to be part of a “shadow banking system” because they are important sources of short-term funding, particularly for banks. For this and other reasons, the FSB urged IOSCO to review potential regulatory reforms of MMFs that would mitigate their susceptibility to runs and other systemic risks and to develop policy recommendations. FSB indicated that a key issue for consideration was the stable net asset value feature of MMFs.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Administrative Agency Updates, Finance & Banking Updates, International Trade Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »