What is CMFI? We are a shareholder advocacy organization dedicated to promoting the interests, needs, and concerns of individual mutual fund investors. Learn more
On January 21, 2013, the Coalition of Mutual Fund Investors ("CMFI") sent a comment letter to the Financial Stability Oversight Council ("FSOC") on money market fund reforms.
The FSOC recently published a series of proposed recommendations regarding the regulatory framework for money market funds, to reduce the risk of a "run" on assets in a future financial crisis. These proposals include a floating Net Asset Value ("NAV"), a capital buffer, a minimum holdback requirement, standby redemption "gates," and standby redemption fees. Several of the FSOC regulatory proposals are unworkable without full transparency into omnibus accounts. This CMFI comment letter explains the operational challenges involved and proposes a cost-effective solution, for both money market funds and their investors.
Click here to review a copy of this CMFI comment letter on money market fund reform: http://www.investorscoalition.com/sites/default/files/CMFI%20Comment%20Letter%20to%20FSOC%20re%20MM%20Funds%201-21-2013.pdf