Fund firms that have money market funds will want to keep an eye on the SEC proceedings regarding the legitimacy of credit-ratings agencies. The SEC said Wednesday it is proposing rule amendments that would impose additional requirements on nationally recognized statistical rating organizations. This could change the regulations on the the type of securities that money market funds are required to hold.
The ICI came out in favor of the review. Paul Schott Stevens
, president and CEO of the mutual fund trade organization, issued the following statement on the matter: "The mutual fund industry commends the Commission for reviewing the role of credit ratings by nationally recognized statistical rating organizations (NRSROs) in its rules and forms. This goes hand-in-hand with the agency’s other reform efforts to ensure an open and effective rating system. We look forward to commenting on the Commission’s forthcoming proposing release.”
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