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August 01, 2009 at 04:00 AM
? The Securities and Exchange Commission voted unanimously June 24 to propose rule amendments to require money market funds to maintain a portion of their portfolios in highly liquid investments, reduce their exposure to long-term debt, and limit their investments to only the highest quality portfolio securities. The Commission requests comment on altering the current regime of the $1 stable net asset value (NAV) for money market funds. In response to the proposal, the Investment Company Institute says it “continues to strongly oppose a move to floating NAVs because such a change would be so unpopular with investors that it would likely push them into riskier, less-regulated products.”
? Certified Financial Planner Board of Standards, Inc. Chair Marilyn Capelli Dimitroff outlined the Board’s proposals to enhance consumer safeguards for investors who use target date funds, in testimony before a joint Securities and Exchange Commission/Department of Labor hearing. Dimitroff told the panel that the SEC should amend Rule 35d-1 (the Investment Company Names rule), to include target date funds. She also recommended that the Department of Labor work with the SEC to establish industry-wide standards to stipulate an appropriate range of asset allocations for each date reflected in a target date fund.
