House to Examine SEC’s Money-Market Fund Plan

Capital Markets Subcommittee sets Sept. 18 meeting on controversial two-pronged plan

More On Legal & Compliance

from The Advisor's Professional Library
  • Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients’ privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
  • How to Avoid Sabotaging Your Compliance Exam There is much more to compliance examination survival than knowing all of the rules. It helps to understand why the rules were put in place—and to recognize that examiners are not the enemy.

The House Financial Services Committee’s Capital Market Subcommittee plans to hold a hearing Sept. 18 on the Securities and Exchange Commission’s proposed rules governing money-market funds.

The SEC in early June proposed two alternative reforms to money funds.

First, to require that all institutional prime money-market funds operate with a floating net asset value (NAV). Second, to employ a “fees-and-gates” approach in which a nongovernment money fund imposes a 2% liquidity fee if the fund’s weekly liquid assets fall below 15% of its total assets.

SEC Chairwoman Mary Jo White (Photo: AP)SEC Chairwoman Mary Jo White (right) said at the time that the two reforms could be adopted separately or combined into a single reform package.

The coment period on the money-market fund proposal expires Sept. 17.

Other hearings to be held by the committee in September include:

Sep. 10 – The Oversight and Investigations Subcommittee will hold a hearing on reducing waste, fraud and abuse in housing programs and examine recommendations made by the inspector general of the Department of Housing and Urban Development.

Sept. 11 – The Monetary Policy and Trade Subcommittee will hold a hearing on the history of the Federal Reserve.

Sept. 12 – The Financial Services Committee will hear from Consumer Financial Protection Bureau (CFPB) Director Richard Cordray during a hearing on the CFPB’s semiannual report.

Sept. 19 – The Financial Services Committee will hold a hearing on the Terrorism Risk Insurance Act, which is currently set to expire on Dec. 31, 2014.

---

Check out Are You Ready for Rising Rates? on ThinkAdvisor.

Reprints Discuss this story
This is where the comments go.