To Float or Not to Float: How investment firms can cope with new SEC rules on Money Market Funds

Advantage: Investment Management (November 2014)

In July 2014, the Securities and Exchange (SEC) announced new rules for money market funds (MMFs) intended to prevent a repeat of the 2008 market meltdown when a sudden surge is withdrawals led one MMF to break the buck and fall below $1 Net Asset Value (NAV).

This article highlights the most significant changes in the SEC rules pertaining to MMFs, including:

  • Floating NAV for Institutional MMFs
  • Government-focused MMFs get floating NAV exemptions
  • What’s in store for nongovernment-focused MMFs
  • Guidance for MMF trustees
  • Diversification and stress testing
  • Increased disclosure requirements

This update also addresses how investment firms can find practical insight and best practices for:

  • Coping with new SEC rules on MMFs.
  • Working with your compliance department to assess and respond to new rules.
  • Better understanding the impact of the new SEC regulations.

Click here to read the November edition of Advantage: Investment Management.

Back to top