MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, June 27, 2012 SEC Staff's Money Fund Draft Weighs in at 337 Pages The SEC's staff is done with its draft proposal on money market reform. And it's 337 pages long. News that the staff has completed the draft proposal of chairman Mary Schapiro's two plans to reform the $2.6 trillion money-market fund industry was reported by Bloomberg and Reuters Wednesday morning. Not surprisingly, the proposal is expected to meet opposition, from within the SEC and without. Even if Schapiro can win the support of the SEC swing vote, Democrat Luis Aguilar, and release the proposal for public comment, the U.S. Chamber of Commerce and fund firm Federated Investors are staunchly opposed. Federated chief executive Christopher Donahue has even threatened to sue, should the rule be ultimately approved. The proposal contains two potential plans. One consists of a floating net asset value, while the other involves the combination of a capital buffer and a holdback on investor redemption requests. SEC spokesman John Nester declined to comment on the proposal itself. However, he told Reuters, "The chairman believes that reforms are necessary because money market funds remain susceptible to destabilizing runs." Printed from: MFWire.com/story.asp?s=40450 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |