Continuing its efforts to fight additional regulations to money
market funds (MMFs), AFP submitted formal comments to Masamichi
Kono, Chairman, Technical Committee of the International
Organization of Securities Commissions (IOSCO).
"We oppose the proposal to eliminate the stable NAV in favor of
a floating NAV, as we believe it would greatly reduce investors'
interest in utilizing MMFs as a cash management and investment
tool, whether applied to all investors or just institutional
investors," the comment letter states. "For purchasers of MMFs, the
return of principal is a much greater driver of the investment
decision than return on principal. For a large number of
institutional investors, the potential of principal loss would
preclude investing in floating NAV MMFs."
Read the full comment letter to IOSCO