Reforming the regulation of money market funds


Financial Services analysis: The Securities and Exchange Commission (SEC) has proposed wide-ranging reforms to the regulation of money market funds (MMFs). But do they go far enough and will they revive investor confidence? Jay G Baris, partner and chair of the investment management practice at Morrison Foerster, New York, considers the implications for the industry.

Original news:

Money market funds set for reform -

Financial Times, 6 June 2013: A number of proposals have been put forward by the SEC for reforming the structure of MMFs. Regulators have been looking at methods to limit the risk posed by the $2.9 trillion money fund industry, since an avalanche of withdrawals helped to freeze bank and corporate funding markets during the financial crisis almost five years ago.

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Topics:  Liquidity Fees, Money Market Funds, NAV, Redemption Gates, SEC, Shadow Banking

Published In: General Business Updates, Finance & Banking 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.

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