The Securities and Exchange Commission's proposed money market reforms have generated hundreds of mostly negative comments from government organizations and others.
The reforms, which could impact the defined contribution retirement plans that offer money-market funds, were introduced in June as a reaction to how the industry dealt with the 2008 financial crisis. The SEC wants to make investments in mutual funds safer for those individuals who rely on them for their future retirement income.
The proposal includes two ideas that the SEC said could be adopted alone or in combination. Under the first, municipal money market funds would have to move away from a stable, $1 per share price, to a floating net asset value, or NAV. Under this scenario, current amortized cost valuation and penny rounding rules would be eliminated, requiring that money market funds mark their NAV daily.
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