CPAs and Advisors with Your Growth in Mind

Institutional Prime Money Market Funds Move to Floating NAV

With a 3-2 vote, the U.S. Securities and Exchange Commission (“SEC”) yesterday adopted a final rule to restrict investors’ risk on money market funds. Voted at an open meeting, the rule requires institutional prime money market funds to shift from a $1 per share net asset value (NAV) to a floating NAV. The floating NAV will apply only to institutional prime money market funds, but the rule also contains discretionary liquidity fees and gates for non-government funds. Also at yesterday’s meeting, the SEC voted to re-propose amendments that would take out credit ratings references from Rule 2a-7, as required by. Read More.

Topics: , , ,