SEC Issues Proposed Rule Related to Money Market Funds
December 15, 2021
The SEC has issued a proposed rule, Money Market Fund Reforms. The proposal would amend certain rules under the Investment Company Act of 1940 that govern money market funds. The amendments are designed to “improve the resilience and transparency of money market funds” and “address concerns about prime and tax-exempt money market funds” as a result of certain investors’ reallocation of assets into cash and short-term government securities during the COVID-19 pandemic.
Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register. For more information, see the press release and fact sheet, as well as statements by SEC Chair Gary Gensler and Commissioners Caroline A. Crenshaw, Allison H. Lee, Hester M. Peirce, and Elad L. Roisman on the SEC’s Web site.