SEC chair says money market reforms coming soon

At ICI conference, Mary Jo White discusses money markets, FSOC

May 22, 2014 @ 3:30 pm

By Hazel Bradford

New rules imposing safeguards on money market funds will be out “in the very near term,” SEC Chairwoman Mary Jo White said Thursday at an Investment Company Institute conference in Washington.

“Staff are intensely focused” on producing “robust, workable rules … in the most cost-effective way,” Ms. White said.

(Don't miss: SEC money fund reform won't placate everyone)

Officials at the Securities and Exchange Commission proposed possible changes last June, including requiring that prime institutional money market funds have a net asset value that would float on a daily basis or keeping the current stable share price, but imposing a liquidity fee or redemption gate; a third option discussed would be some combination of the two approaches.

As many as half of all defined contribution and defined benefit plans use money market funds for stability, liquidity and a low-cost diversified way to access commercial paper and government securities, according to ICI data.

Ms. White also addressed concerns about the Financial Stability Oversight Council's process and goals as it attempts to identify financial institutions that pose systemic risk. The council “ought to be looking very closely at what is it (council members) are trying to achieve. What does it actually accomplish?” said Ms. White, who is one of 10 voting members on the council.

Recognizing complaints of a lack of transparency and council members having a banking regulator bias that makes them less familiar with money management firms, Ms. White said, “I don't think (money managers) are overreacting to the process. I think it is enormously important for FSOC to make certain that it has the requisite expertise.”

Hazel Bradford is a reporter at sister publication Pensions & Investments

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What's the first thing advisers should do when they get home from a conference?

After attending a financial services conference, advisers can be overwhelmed by options, choices and tools. What's the first thing they should do when they get back to their office?

Latest news & opinion

Maryland jumps into fiduciary fray with legislation requiring brokers to act in best interests of clients

Legislation requires brokers to act in the best interests of clients.

8 apps advisers love for getting stuff done

Smartphone apps that advisers are using in 2018 to run their business more efficiently.

Galvin's DOL fiduciary rule enforcement triggers industry plea for court decision

Plaintiffs warned the Fifth Circuit that Massachusetts' move against Scottrade signaled that the partially implemented regulation can raise costs for financial firms.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

Is Fidelity competing with retirement plan advisers?

As the Boston-based mutual fund giant expands the products and services it brings to the retirement market, some financial advisers say the firm is encroaching on their turf.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print