After the Securities and Exchange Commission (SEC) was unable to reach a consensus on a money market fund (MMF) reform proposal in August 2012, the focus shifted to the Financial Stability Oversight Council (FSOC). In November, the FSOC published proposed recommendations for potential MMF reform actions that would be submitted to the SEC for public comment. The proposed recommendations included a range of options, including requiring MMFs implement a floating net asset value or, in the alternative, maintain a stable net asset value, subject to the maintenance of capital buffers and restrictions on redemptions under certain circumstances.
FSOC members have indicated a preference for the SEC to take actions to address the FSOC’s concerns on the SEC’s own initiative. However, following the departure of Chairman Mary Schapiro and the SEC’s release of a report responding to questions raised by certain SEC Commissioners, it remains to be seen whether a majority of the SEC Commissioners may be prepared to initiate a new MMF reform proposal at the SEC. The webinar will address the following topics:
- MMF industry and reform initiatives 2008-2012
- The FSOC recommendation process
- Issues and implications regarding the FSOC reform alternatives
- Prospects for SEC action on MMF reform
