The Securities and Exchange Commission Reforms Money Market Rules

The Securities and Exchange Commission Reforms Money Market Rules

On July 23, 2014, the Securities and Exchange Commission (SEC) adopted amendments to the rules that govern money market mutual funds. The amendments strive to preserve the key benefits of money market funds while reducing the risks associated with investor runs. However, for mutual funds – and their business partners – the revised rules will likely require significant reforms to their structures and operations.

Key provisions that will challenge the current operating model include: a floating net asset value (NAV) decimalized to a basis point; the definition of ‘Retail Funds” as those with procedures to limit investors to “natural persons; and the introduction of gates and liquidity fees.

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Dodd-Frank Four Years Later

Dodd-Frank Four Years Later

The fourth anniversary of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) is a perfect opportunity to reflect on the progress that has been made since the Act’s passage in 2010 and to look forward to the required regulations that have to be implemented. The law was a direct response to the financial downturn, and was specifically designed to prevent a similar crisis from happening again. So how are things going so far?

Overall, it’s a mixed bag. Considerable progress toward implementation and reform has been made in some areas, while others are just getting warmed up.

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