The SEC set effective and compliance dates for amendments aimed at preventing runs on money market funds during times of financial stress. The SEC is adopting a tiered approach to the transition periods for the final amendments.
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Investment Company Institute President and CEO Eric Pan criticized the SEC's adoption of recent rule amendments aimed at preventing a run on money market funds, saying that the SEC "missed the mark" by imposing "mandatory fees along with overly strict liquidity requirements."
The SEC adopted rule amendments aimed at preventing a run on money market funds during a time of financial stress.
In remarks before the Investment Company Institute, SEC Chair Gary Gensler addressed risks associated with liquidity mismatches. He described initiatives to enhance liquidity risk management.
The SEC filed charges against an investment adviser of a mutual fund, as well as several of its trustees, for investments in illiquid assets that exceeded the amount allowed under the Liquidity Rule. The enforcement action is the first ever for the SEC involving Liquidity Rule violations.