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SIFMA’s Asset Management Group Supports SEC Rules To Limit Risk By Money Market Mutual Funds

Date 27/01/2010

The Securities Industry and Financial Markets Association (SIFMA) today released the following statement by Asset Management Group (AMG) Managing Director Tim Cameron on the adoption of rules by the U.S. Securities and Exchange Commission (SEC) to limit risk by money market mutual funds.

“We support today’s decision by the SEC to adopt new rules that foster greater protections for mutual fund shareholders. SIFMA, led by its buy-side member firms which participate in the AMG, will engage with market participants to help implement these enhanced requirements.

“We also commend the SEC for deferring action regarding the adoption of a market-based or ‘floating’ NAV with respect to money market funds. SIFMA’s AMG members believe the stable NAV serves the needs of individual and institutional investors well. In many instances, investors would not invest in money market mutual funds with a floating NAV and would have to seek alternative investment options. Therefore, we urge the SEC not to impose a ‘shadow’ NAV on the marketplace without first providing a specific regulatory proposal coupled with an opportunity for public comment.

“SIFMA applauds the Commission for its thorough and generally well-thought out approach to money market fund reform, particularly as it affects individual investors. We remain committed to advancing responsible reforms that strengthen markets, protect investors, and encourage America’s economic recovery.”