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.

Written by:

more+
less-

Morrison & Foerster LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×