SEC chair says money market reforms coming soon

At ICI conference, Mary Jo White discusses money markets, FSOC.
JUL 10, 2014
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

Latest News

Barred advisor forged wife’s signature on life insurance contracts, according to FINRA
Barred advisor forged wife’s signature on life insurance contracts, according to FINRA

Thrivent Investment Management Inc. in May fired Nicholas Hale, according to his BrokerCheck profile.

Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways
Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways

About 70 bank and credit union advisors move to the Raymond James platform, while a $480M New Jersey team goes independent with LPL

Tax-aware investing should expand client choices, not constrain them 
Tax-aware investing should expand client choices, not constrain them 

The best tax plan asks not only how much a client could save, but what they would have to give up to save it. 

Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis
Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis

A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.

SEC enforcement against public companies hits record low under Atkins
SEC enforcement against public companies hits record low under Atkins

New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.