Schapiro Tables Money Market Fund Reform Proposals
SEC Chairman Mary Schapiro announced that the SEC will not seek structural reforms for money market funds. She indicated that a majority of the commissioners do not support reform proposals including a floating NAV or an investor holdback. She labeled money market fund reform as “one of the pieces of unfinished business from the financial crisis” and noted that the Treasury Department’s guarantees stopped “the growing damage” following the Reserve Fund’s failure. Ms. Schapiro warned about the “flaws inherent in the structure of money market funds.” She said that 300 fund sponsors since the 1980s have requested relief to offer capital support to money market funds.