U.S. SEC Chairman Schapiro Announces SEC Will Not Vote on Money Market Fund Reform, But Other Regulators May Take Action
August 28, 2012
Chairman Mary L. Schapiro of the Securities and Exchange Commission on August 22, 2012 issued a press release announcing that the SEC would not call a meeting to vote on a proposal to introduce additional reforms for money market funds. While Chairman Schapiro’s announcement has decreased the potential for structural changes to money market funds in the near term, the possibility remains for further action by the Financial Stability Oversight Council or the Board of Governors of the Federal Reserve System. This update discusses the events that led to the SEC’s impasse on proposing additional reforms, provides an overview of Chairman Schapiro’s statements in the press release and outlines possible actions the FSOC or Federal Reserve might take to address perceived weaknesses in the structure of the money market fund industry.