Regulatory Alerts2013-06-19 | 2013-13687Added
Money Market Fund Reform; Amendments to Form PF
The Securities and Exchange Commission proposes two alternative regulatory frameworks for money market mutual funds to enhance resilience against heavy redemptions and mitigate contagion risks. The first alternative requires funds to transition to a floating net asset value based on current market prices, while the second permits standby liquidity fees and temporary redemption gates when liquidity levels fall below specified thresholds. Additionally, the Commission proposes amendments to increase portfolio diversification, enhance stress testing, and expand reporting requirements for funds and their advisers to improve transparency.
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