U.S. SEC Chairman Schapiro Announces SEC Will Not Vote on Money Market Fund Reform, But Other Regulators May Take Action


Chairman Mary L. Schapiro of the Securities and Exchange Commission (SEC) issued a press release on August 22, 2012, announcing that the SEC would not call a meeting to vote on a proposal to introduce additional reforms for money market funds (money funds). There have been several years of controversy regarding whether additional regulatory reform of money funds is warranted, and there had been reports that the SEC would vote on a draft proposal in late August. However, the press release states that three of the four other SEC Commissioners had informed Chairman Schapiro that they would not support the draft proposal prepared by SEC staff. While Chairman Schapiro’s announcement has decreased the potential for structural changes to money funds in the near term, the possibility remains for further action by the Financial Stability Oversight Council (FSOC) or the Board of Governors of the Federal Reserve System (Federal Reserve) to change the regulatory structure or treatment of money funds.

This DechertOnPoint discusses the events that led to the SEC’s impasse on proposing additional reforms, provides an overview of Chairman Schapiro’s statements in the press release and outlines possible actions that the FSOC or Federal Reserve might take in order to address perceived weaknesses in the structure of the money fund industry.

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.

© Dechert LLP | Attorney Advertising

Written by:


Dechert LLP on:

Readers' Choice 2017
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*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*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.