U.S. Money Market Fund Reform: Diversification, Stress Testing and Disclosure Compliance Deadline Quickly Approaching; SEC Staff Issues New FAQs

February 16, 2016

The April 14, 2016 compliance date for certain new money market fund (money funds) requirements adopted by the U.S. Securities and Exchange Commission (SEC) is quickly approaching. In particular, money funds will be required to:

  • Comply with new diversification and stress testing requirements;
  • Report new information on their websites; and
  • Incorporate new disclosure into their registration statements and advertisements.

Money funds and their advisers should consider updating their policies and procedures, registration statements and advertisements and adopting new systems and controls to address these requirements in advance of the upcoming compliance date. Certain of these changes may need to be approved or ratified by the money fund’s board of directors/trustees (board).

Read "U.S. Money Market Fund Reform: Diversification, Stress Testing and Disclosure Compliance Deadline Quickly Approaching; SEC Staff Issues New FAQs."