Money Market Reforms


Mutual Funds

On February 23, 2010, the SEC adopted new rules to govern money market mutual funds. Prompted by the collapse of the Reserve Primary Fund in September 2008, the SEC reacted with new rules focusing on quality and liquidity standards for securities in which the funds invest, as well as permitting funds to suspend redemptions should an overwhelming wave of redemption requests threaten the stable $1.00 NAV of the fund.

The majority of the changes are effective May 5, 2010 with a few exceptions that have compliance dates after May 5th. Please see the Final Rule for more information.

 

 

 

 

 

 

 

   
 
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