SEC Proposes Money Market Reforms
June 11, 2013
BY THE INVESTMENT MANAGEMENT PRACTICE
On June 5, 2013, the Securities and Exchange Commission (“SEC”) unanimously approved, and distributed for public comment, a proposal which set forth two proposed alternative frameworks for additional regulation of money market funds. In doing so, the SEC stated that its goal was to: (i) preserve the ability of money market funds to function as effective and efficient cash management tools for investors, (ii) provide funds with better tools to manage and mitigate potential contagion from high levels of redemptions, and (iii) increase the transparency of their risks.