Companies purveying money market funds have a lot of opinions on the S.E.C.'s money fund reform, and they're going to get the chance to express all of them today. Representatives of fund companies will tell U.S. lawmakers what pieces of the regulation, if not all of it, they disagree with before the House Financial Services Committee today, Bloomberg's
Dave Michaels writes.
] and , Valley Forge
] have said that the SEC should allow municipal funds to keep a constant share price, Michaels reported. Georgia State Treasurer Steve McCoy was quoted as saying by Michaels in a prepared testimony, "Since municipal money-market funds have been very stable through many market cycles and did not experience large redemptions in the 2008 financial crisis, imposing a floating NAV on such funds seems entirely unnecessary."
writes that Fidelity wrote to the SEC, "The SEC staff estimated that only 30 percent of all assets would be subject to a floating NAV if adopted by the SEC. The SEC grossly underestimated the industry assets that would be impacted, which would be closer to 65 percent of all assets."
Charles Schwab also wrote in its letter
to the SEC that its estimations were wrong, only in the case of estimated costs to the companies to modify systems post-regulation.
To read more, click here here
Stay ahead of the news ... Sign up for our email alerts now