Securities and Exchange Commission chairwoman Mary Schapiro remained steadfast Friday in her plans to issue soon a proposal to further rein in the money-market fund industry.
During a conversation with Mellody Hobson, president of Ariel Investments, at the Investment Company Institute’s (ICI) annual conference in Washington, Hobson noted how the industry and the SEC are at “loggerheads” over the SEC’s plans to float the net asset value of money-market funds and impose capital requirements, along with limiting or charging fees on redemptions.
Hobson told Schapiro that the fund industry has “never dug in its heels like this,” in objection to a reform proposal by the SEC. Schapiro responded in agreement: the industry is “more dug in and strident [on money-market fund reforms] than we’ve seen on other issues.”
However, Schapiro said that despite that fact “We do all know where we stand,” and that she “applauded” the firms that have been in to talk to the SEC about their concerns with money-market funds.