In light of the ongoing debate over changes to money market fund regulation, the Executive Committee of ICI's
In 2010, the
The 2010 reforms were tested during the summer of 2011, when money market funds faced three unprecedented challenges:
For more than two years, money market fund yields have been near zero. Funds have faced increased competition from banking products due to unlimited deposit insurance for non-interest-bearing checking accounts and the payment of interest on business checking for the first time in 80 years. Despite these factors, investors consistently have entrusted more than
For cash management purposes, many investors likely would resort to funds that are less regulated and transparent than money market funds, thereby increasing–not decreasing–risks to the financial system.
For all of these reasons, and particularly in light of the demonstrated effectiveness of the comprehensive money market fund reforms already adopted by the
The Executive Committee is responsible for evaluating policy alternatives and various business matters on behalf of the ICI Board of Governors.
For more information on money market funds, their role in the economy, ICI's efforts to make these funds more resilient in the face of adverse market conditions, and the significant risk of undermining money market funds' value to investors and the economy, please see www.ici.org/mmfs or www.PreserveMoneyMarketFunds.org.
TNS MD66 120315-3807171 61MariaDonald
|Copyright:||(c) 2012 Targeted News Service|
|Source:||Targeted News Service|