Home Viewpoints

TOPICS
401(k)
Bond Fund
Bonds
COVID-19
Commodity Investments
Corporate Bonds
Cybersecurity
Equity Fund
Equity Investing
Europe
Events
Exchange-Traded Funds
Federal Reserve
Financial Markets
Financial Stability
Fixed Income
Fund Governance
Fund Regulation
GMM
Global
Government Affairs
ICI Global
IDC
IRA
Index Fund
Interest Rate
International
Investment Education
Investor Research
Money Market Funds
Mutual Fund
Operations and Technology
Policy Research
Proxy Voting
Retirement Policy
Retirement Research
Savings
Shareholder
Target Date Funds
Taxes
Trading
Treasury
ARCHIVE
ICI Responds to Letter on Money Market Funds from Federal Reserve Bank Presidents
Ianthé Zabel
February 12, 2013
Today, ICI made the following statement in response to a comment letter on money market fund reforms filed with the Financial Stability Oversight Council (FSOC) by the presidents of the 12 regional Federal Reserve banks.
We welcome the Federal Reserve Bank presidents’ recognition that different types of money market funds have distinct risk profiles and had different investor redemption experiences during the financial crisis. It is abundantly clear that there is no case for further, fundamental changes in Treasury, government, or tax-exempt money market funds. ICI firmly believes that any money market fund issues should be considered and directed by the Securities and Exchange Commission, which has direct authority over mutual funds, including money market funds.
For the reasons detailed in ICI’s comment letter to FSOC, we believe a temporary redemption gate and liquidity fee for prime money market funds is the only proposal under discussion that would stop redemptions during extreme market stress. FSOC’s other proposals would not accomplish regulators’ stated goals and would harm investors and the economy.
Please visit ICI’s resource center for more information on money market funds.
Ianthé Zabel is ICI’s Deputy Chief Public Communications Officer.
TOPICS: Money Market Funds
Copyright © 2021 by the Investment Company Institute