Amendments to the Regulatory Structure Governing Money Market Funds

March 11, 2010
The SEC recently adopted amendments to Rule 2a-7 and other rules under the Investment Company Act of 1940 governing the regulation of money market mutual funds. The amendments are intended to strengthen Rule 2a-7’s risk-limiting conditions, enhance portfolio information disclosure, and improve fund operations. This update examines the new regulatory model for money market funds as well as additional changes being considered by the SEC that could prove to be a major overhaul of the money market fund industry.