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ARCHIVE
ICI Supports Legislation to Shield U.S. Investors from Foreign Financial Taxes
By Ianthé Zabel
November 30, 2012
ICI issued the following statement in support of H.R. 6616, a bill introduced by Representative Tom Price (R-GA) and designed to protect American investors from the application of extraterritorial financial transaction taxes.
“Representative Price has weighed in on a very important issue for U.S. market participants, including mutual funds and their more than 90 million shareholders. His legislation responds to an inappropriate attempt by France to impose its financial transactions tax on American shareholders who trade domestically in certain U.S. securities. We strongly support this timely effort by Representative Price to protect American investors from the extraterritorial application of this tax, which would deprive them of the return they have earned on their investments.”
Please visit ICI’s resource center for more information on this issue.
Ianthé Zabel is ICI’s Deputy Chief Public Communications Officer.
TOPICS: TaxesFinancial MarketsGovernment Affairs
On Money Market Funds, False Promises and Faulty Premises from The Wall Street Journal
By Paul Schott Stevens
November 20, 2012
The Wall Street Journal continues its efforts to tar money market funds with the stigma of “bailout” and to impose a solution that will destroy a product that plays a key role in financing the economy (“Liberating Money Funds,” Review & Outlook, November 19).
TOPICS: Money Market Funds
Beware Recurring Misstatements on Money Market Funds
By Mike McNamee
November 16, 2012
With the recent action from the Financial Stability Oversight Council, money market funds are receiving extra attention these days from the news media.
Unfortunately, we still see instances where the coverage falls short. Stories and commentary continue to repeat myths and misconceptions about money market funds.
TOPICS: Money Market Funds
An Operations Issue to Watch: Shortening the Settlement Cycle
By Martin A. Burns
November 15, 2012
Should the time between the execution of securities trades and settling payment be reduced in U.S. markets? The Depository Trust & Clearing Corporation (DTCC)—the financial industry utility that processes securities transactions, including those for the fund industry—has recently delved into this question, aided by a study from the Boston Consulting Group (BCG). The study examines the costs of moving to a shortened settlement cycle and the time it would take to pay off those costs given the potential savings from operational and efficiency gains.
TOPICS: Operations and Technology
Do U.S. Banks Rely Heavily on Money Market Funds? No.
By Sean Collins and Chris Plantier
November 14, 2012
Money market funds provide important short-term funding for the U.S. economy: these funds hold a total of $2.5 trillion in Treasury and agency securities, repurchase agreements, and other financial instruments.
TOPICS: Financial MarketsMoney Market Funds
The FSOC Fails to Advance the Debate
By Mike McNamee
November 13, 2012
ICI President and CEO Paul Schott Stevens issued the following response to today’s meeting of the Financial Stability Oversight Council (FSOC):
Regrettably, today’s action by the FSOC fails to advance the debate over how to make money market funds more resilient in the face of financial crisis. The Council apparently is proposing to send back to the Securities and Exchange Commission (SEC) the very same concepts that a majority of the Commission’s members declined to issue for public comment in August.
TOPICS: Money Market Funds
FATCA Must Not Undercut the Advantages That U.S. ETFs Offer Global Investors
By Keith Lawson and Ryan Lovin
November 6, 2012
In recent months, ICI has continued to engage closely with regulators to share our concerns and suggestions for implementing the Foreign Account Tax Compliance Act (FATCA).
TOPICS: TaxesICI Global
More Time Is Needed to Ensure Effective FATCA Implementation
By Keith Lawson
November 6, 2012
On January 1, 2013, various rules implementing the Foreign Account Tax Compliance Act (FATCA) begin to take effect.
TOPICS: TaxesICI Global
Paper Concludes Amortized Cost Is Appropriate for Money Market Funds
By Gregory Smith
November 2, 2012
A recently released paper examines the use of amortized cost by money market funds and concludes that its use is appropriate given the short-term, high-quality nature of these funds’ investments. The paper also discusses how use of amortized cost is well supported by more than 30 years of regulatory and accounting standard-setting consideration. Author Dennis R. Beresford is the Ernst & Young executive professor of accounting at the J. M. Tull School of Accounting, Terry College of Business at the University of Georgia. Beresford served as chairman of the Financial Accounting Standards Board (FASB) for more than ten years.
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