SEC Proposes Floating NAV for Institutional Prime Money Market Funds; “Fees and Gates” for Non-Government Funds

more+
less-

The Securities and Exchange Commission today unanimously proposed two alternative requirements for money market funds. First, the SEC would require institutional prime money market funds to operate with a floating net asset value (NAV). Separately, the SEC would require non-government money market funds to adopt “fees and gates” to stem redemptions in times of stress.

In her remarks at the open meeting, Chairman Mary Jo White said that it has been “a journey to get to this point.” She said that the proposals are important “because they advance the public debate that will shape the final rules to address one of the most prominent events arising from the financial crisis.”

Please see full alert below for more information.

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


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

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...
×
×