Financial services trade groups, including the Investment Company Institute (ICI) and the Financial Services Institute (FSI), sent a joint letter to the Securities and Exchange Commission (SEC) Tuesday asking the agency to not pursue its proposed changes to money-market funds, saying they would jeopardize Americans’ retirement savings.
The groups told the SEC that they represent the interests of a “significant and broad part of the retirement plan community, including employers and service providers.” Together, the group said, the proposals under consideration, “taken alone or in tandem, would fundamentally alter the structure of money-market funds, rendering them far less desirable—if not unusable—for retirement savers and the plans they participate in.”
The groups signing the letter were the ICI, FSI, American Society of Pension Professionals and Actuaries (ASPPA), American Benefits Council (ABC), The ERISA Advisory Council, SPARK Institute, Securities Industry and Financial Markets Association (SIFMA), U.S. Chamber of Commerce, and the National Association of Insurance and Financial Advisors (NAIFA).
Industry officials say the SEC may act as early as Aug. 29 in proposing its changes.
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FSI President and CEO Dale Brown told the SEC that while “FSI understands the SEC’s desire to protect investors and strengthen America’s regulatory framework, imposing a floating NAV on money-market funds, however, is simply not in the best interests of American investors or businesses.” The proposed changes “could unnecessarily undermine one of the key instruments that Main Street investors count on for stability and liquidity, while depriving businesses and governments of a crucial source of financing.”