SIFMA Submits Comments to the FSB on the FSB's Consultative Document Related to Policy Recommendations for Money Market Funds
SIFMA has submitted comments to the Financial Stability Board ("FSB") on FSB's Consultative Document, An Integrated Overview of Policy Recommendations, relating to policy recommendations for money market funds of the International Organization of Securities Commissions ("IOSCO"). In the letter, SIFMA suggests that the following guiding principles should inform any money market fund reform:
- Tailor reforms as narrowly as possible given the possibility of dislocations that could result from reform;
- Only pursue reforms that bear on the stated goal of reducing the perceived susceptibility of money market funds to destabilizing runs; and
- Carefully consider the need for transparency and simplicity.
To support transparency, SIFMA further suggests requiring more frequent public disclosure of market-based net asset value and portfolio holdings-related information.
Click hereto view letter in full (links externally to SIFMA website).See also: SIFMA News Release; see also: SEC Division of Risk, Strategy, and Financial Innovation Special Report on Money Market Funds (Interesting Stuff) (with Lofchie Comment).