Last week, AFP and other professional associations convened at the White House to support legislation that would restore stable value prime and municipal money market funds for institutional investors.
I, along with Emily Swenson Brock from the Government Finance Officers Association, Vince Randazzo from the Coalition for Investor Choice, and former Congressman John Christensen from the State Financial Officers Foundation, met Andrew Olmem, Special Assistant to the President for Financial Policy of the National Economic Council for a discussion on The Consumer Financial Choice and Capital Markets Protection Act of 2017 (S. 1117/ H.R. 2319).
Mr. Olmem understood the key issues—where funds have left, where they went and why. The administration is very much focused on reconciling existing regulations with its core principals for regulating the financial system, introduced in an Executive Order on February 3, 2017. The U.S. Treasury Department is expected to issue recommendations with respect to banking next week, with capital markets recommendations to come out after that. The NEC will look to those recommendations in developing policy positions.
The Coalition for Investor Choice, which AFP is part of, plans to have a meeting with the Treasury Department in the coming weeks to further discuss stabilizing prime and municipal money market funds. The group also met with Michelle Mesack, Securities Counsel for the Senate Banking Committee, which is chaired by Senator Mike Crapo (R-Idaho), who was a co-sponsor of the legislation of the last Congress.
I'll be speaking about this and more at Crane’s Money Fund Symposium coming up in Atlanta. We will also have plenty of coverage on short-term investing at AFP 2017 in October.
Tom Hunt, CTP, is director of treasury services for AFP.