Insights
Market Insights
Update on Money Market Fund Regulatory Reform
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Market Insights
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December 16, 2021
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December 16, 2021
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Update on Money Market Fund Regulatory Reform |
On December 15th, the SEC (Securities and Exchange Committee) held an open meeting at which a proposal for money market fund reforms was presented and discussed. This was the next step in the process as the regulators consider enacting reforms aimed at improving the resilience and transparency of money market funds.
Key aspects of the proposed reforms are as follows:
The vote in favor of proceeding to the next step with these proposals was 3-2. These proposals will next advance to a public comment period, which is expected to commence very shortly. The comment period will last for 60 days. Subsequent to the regulators reviewing those comments, it is anticipated they will move to the final rule-making step of the process.
RISK CONSIDERATIONS
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events.