Mary L. Shapiro, Chairman of the SEC, spoke at PLI’s “SEC Speaks” conference on a variety of issues, including the SEC’s money market fund reform initiative. Ms. Shapiro identified money market funds as a high-profile area of interest for the SEC, citing their susceptibility to runs and to a sudden deterioration in the quality of holdings as the SEC’s greatest concerns. She stated that the SEC is seriously considering two options for reform, requiring money market funds to value their shares using floating net asset values or imposing capital requirements combined with limitations or fees on redemptions. Shapiro acknowledged the investment industry’s strong opposition both of these approaches. She stated that the SEC did not have a specific deadline for reform, but noted the considerable time and outreach already devoted to money market reform, including The President’s Working Group report on reform options in October 2010, extensive public comment, and the Financial Stability Oversight Council Roundtable in May 2011.
See http://sec.gov/news/speech/2012/spch022412mls.htm to access her speech.
To access The President’s Working Group October 2010 report on reform options, see