U.S. Chamber Warns SEC’s Mary Schapiro on Money Market Funds

By Staff Writers
Published: 2012-06-01

The U.S. Chamber of Commerce yesterday sent another letter to U.S. Securities and Exchange Commission Chairman Mary Schapiro warning her to refrain from proposing more regulatory changes to money market mutual funds (MMMFs). This latest letter from the Chamber was co-signed by no less than 118 other organizations, including the Association for Financial Professionals.

"The regulatory changes under discussion at the SEC would significantly undermine the value and utility of MMMFs, discouraging corporate, municipal, and individual investors' use of these types of investment products," the letter states.
Read the full letter here.

Corporate Treasurers Wary of Floating NAVCorporate treasurers are highly skeptical about the merits of money-market funds switching to a floating net asset value. The general consensus among attendees at a recent roundtable was that Rule 2a-7 appears headed for an overhaul that is likely to include a floating NAV.
Treasurers Take Note: FSOC Refining FocusThe FSOC unanimously approved its third annual report recently, underscoring several systemic threats facing the financial system of interest to treasurers, including market runs, cyberattack vulnerabilities, interest-rate reform and overreliance on intraday credit extensions.
Ex-FDIC Chair Sheila Bair: Floating NAV is ‘the Best Thing’How does ex-FDIC Chair Sheila Bair think money-market mutual funds should be restructured, and why? A keynote speaker at the upcoming 2013 AFP Annual Conference, Bair didn't mince words when asked.
SEC Commissioner Hints at Money Market Fund Proposal NearIn a recent interview SEC Commissioner Daniel Gallagher said he expects new rules governing money-market mutual funds to be proposed within two months. The proposal would include a floating NAV, Gallagher said.
Former SEC Officials Differ on MMF ReformsLast week, former officials of the Securities and Exchange Commission sent a letter to the Financial Stability Oversight Council (FSOC), urging it to stop pressuring the SEC to enforce tighter regulations on money-market funds. However, another former SEC chairman believes that the FSOC has no choice but to intervene.

U.S. Chamber Warns SEC’s Mary Schapiro on Money Market Funds

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