SEC Issues Proposed Rule regarding Tax-Exempt Money Market Funds
Comments are requested by the Securities and Exchange Commission on proposed rules regarding Tax-Exempt Money Market Funds. The lengthy proposal includes the following proposed changes to the current SEC Rule 2a-7. Proposed rule: Money Market Fund Reforms; Conformed to Federal Register version (sec.gov)
The proposed rule changes include:
- Removes liquidity fee and redemption gate provisions in SEC Rule 2a-7
- Requires institutional prime and tax-exempt funds to implement swing pricing policies and procedures
- Proposes to increase the daily liquid asset (25%) and weekly asset (50%) minimum liquidity requirement
- Amends certain reporting requirements
The Federal Liaison Center is seeking feedback for response to the proposed rule by April 8. Please contact Emily Brock with comments.