Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
The Securities and Exchange Commission (SEC) has proposed wide-ranging reforms to the regulation of money market funds (MMFs). But do they go far enough and will they revive investor confidence? Jay G Baris, Partner and Chair of the Investment Management practice at Morrison Foerster, New York, considers the implications for the industry.
A number of proposals have been put forward by the SEC for reforming the structure of MMFs. Regulators have been looking at methods to limit the risk posed by the $2.9 trillion money fund industry, since an avalanche of withdrawals helped to freeze bank and corporate funding markets during the financial crisis almost five years ago.
In summary, what changes are proposed?
The SEC has put forward numerous reforms of the regulation of money market funds, but essentially there are two main stand-alone proposals, which mean the SEC could adopt either one individually, or in tandem with each other:
Under this proposal an institutional prime MMF would no longer be able to round up an NAV to the nearest dollar. Rather, the investors in a fund would have to purchase and sell their shares at whatever the value of the NAV is at the point of sale; it wouldn’t be fixed at $1. The proposals do not apply to government or retail funds. This means that they define a retail fund as one that restricts redemptions by any one shareholder to no more than $1 million a day.
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234