Comments on SEC-proposed amendments to money market fund rules are due by April 11, 2022. The proposed amendments, which govern money market funds under the Investment Company Act of 1940, were published in the Federal Register.
As previously covered, the proposed amendments include:
- increasing the amount of assets with daily liquidity that a money market fund must hold;
- removing money market funds' authority to impose either gates on redemption or liquidity fees on redeeming investors;
- requiring institutional prime and institutional tax-exempt money market funds to implement swing pricing;
- modifying certain reporting requirements on Forms N-MFP and N-CR to improve availability of money market fund information;
- adding provisions to address how money market funds with stable net asset value should handle a negative interest rate environment;
- adding provisions that specify how funds must calculate weighted average maturity and weighted average life; and
- requiring a fund to file a report when it falls below a specified liquidity threshold.
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