"SEC to Rewrite Money Fund Rule 2a-7"
"SEC to Rewrite Money Fund Rule 2a-7" posits mmexecutive.com, quoting the SEC's director of the division of investment management Andrew Donohue, "Money market funds have been stable throughout some of the most challenging environments. The model is to be improved. The goals of stability, liquidity, income can sometimes be in conflict with one another." MME says, Donohue said yesterday at ICI's Equity, Fixed Income & Derivatives Markets Conference, "There are three classes of money market fund investors: redeemers, purchasers and investors. It is easy in times of stress to focus on the needs of one and not the needs of all. Rule 2a-7 must be rethought, even though it has worked well for 27 years." See also, Smart Money's "Many Money Markets Yet to Apply for Insurance".
