SEC Proposal, 2013
In June 2013, the Securities and Exchange Commission (SEC) voted to proceed with another round of substantial regulatory changes for money market funds, following a set of reforms adopted in 2010.
For this second round of rulemaking, the SEC proposed two major components that could either stand alone or be combined. Under one alternative, money market funds would offer a stable net asset value (NAV) coupled with a new ability to impose liquidity fees and redemption gates if a fund’s liquidity is constrained. Under the other, floating NAVs would be imposed on prime and tax-exempt institutional money market funds.