September 3, 2013

House to Examine SEC’s Money-Market Fund Plan

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

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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.

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