SEC Does Not Have Required Votes to Implement Money Market Reform

August 22, 2012

SEC Chairman Mary Schapiro announced in a press release that she does not have the requisite three Commissioner votes to implement proposed reforms of money market funds. She stated that because three Commissioners have now stated that they will not support her proposal and that it therefore cannot be published for public comment, there is no longer a need to formally call the matter to a vote at a public Commission meeting. She also rejected the idea forwarded by certain Commissioners of issuing a concept release on money market funds. In her view, a concept release at this point does not advance the discussion. In her press release, she reviewed the history of money market funds, the funds’ structural issues and the reform alternatives. She noted that the draft release, which would not be issued, requested comment on multiple alternative approaches to money market fund reform, including liquidity fees and gates – all with a view of furthering the public debate. Click Here to access the press release.


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Investment Advisers, Investment Companies