SEC Issues Final Rule Related to Money Market Fund Reforms

The SEC has issued a final rule that amends certain rules governing money market funds under the Investment Company Act of 1940. The primary purpose of the final rule is to “improve the resilience and transparency” of money market funds. Specifically, the amendments, among other things, “increase minimum liquidity requirements for money market funds to provide a more substantial liquidity buffer in the event of rapid redemptions” and “remove provisions in the current rule that permit a money market fund to suspend redemptions temporarily through a gate and allow money market funds to impose liquidity fees if their weekly liquid assets fall below a certain threshold.”

For more information, see the press release and fact sheet — as well as statements by SEC Chair Gary Gensler and Commissioners Caroline Crenshaw, Jaime Lizárraga, Hester Peirce, and Mark Uyeda — on the SEC’s Web site.