FSOC Issues Proposed Recommendations on Money Market Fund Reforms After SEC Fails to Act
On November 13, 2012, the Financial Stability Oversight Council (FSOC) voted to issue proposed recommendations (Proposed Recommendations) to the U.S. Securities and Exchange Commission (SEC) regarding additional reforms of the rules governing money market funds (money funds). The FSOC’s action follows extended debate regarding whether regulatory reform of money funds in addition to the reforms adopted in 2010 is warranted. In particular, the FSOC developed and issued its Proposed Recommendations only after SEC Chairman Mary L. Schapiro announced on August 22, 2012 that the SEC would not call a meeting to vote on a proposal to introduce additional reforms for money funds, because three of the four other SEC Commissioners had informed her that they would not support the draft proposal prepared by SEC Staff. To keep reading, download the full article.