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AFP Sends Comment Letter to FSOC on Money Market Funds Reform

  • By Konstantine Kastens
  • Published: 2013-01-30

In response to a request for comment by the Financial Stability
Oversight Council (FSOC) on proposed action encouraged to be taken
by the Securities and Exchange Commission (SEC) to reform the money
market funds industry, the Association for Financial Professionals
(AFP) submitted a letter to FSOC on January 22. The
letter addresses the concerns felt by businesses, which act as both
investors of money market funds and issuers of the securities that
underlie those funds.

"AFP maintains that the implementation of additional regulation
on MMFs, in the form of the recommendations presented by FSOC, will
have major unintended harmful consequences that will result in
significantly reduced investor interest in this investment," the
letter says. Three alternative recommendations for overhauling the
money market fund industry have been offered by FSOC, all of which
propose to restructure the very elements of a money market fund
that enable its functionality as a low-risk source for business
financial management.

Copyright © 2014 Association for Financial Professionals, Inc.
All rights reserved.

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