Mutual fund leaders announced today they are endorsing several recommendations to improve and increase oversight of money market funds. The Investment Company Institute is supporting proposals from the Money Market Working Group that call for new standards and regulations, strengthening funds’ resiliency.
The Money Market Working Group is a panel of fund industry leaders established last November and headed by John J. Brennan, chairman of The Vanguard Group.
Among the recommendations, the Group says it would like to see – for the first time – imposed daily and weekly minimum liquidity requirements and require regular testing of the fund’s individual portfolio holdings and shareholder base.
“The recommendations respond directly to weaknesses in current money market fund regulation, identify additional reforms that will improve the safety and oversight of money market funds, and will position responsible government agencies to oversee the orderly functioning of the money market more effectively,” Brennan said in a prepared statement issued today.