CFO Magazine writes "Will SEC Rules Make Treasurers Flee Money-Market Funds?". The article says, "The Securities and Exchange Commission is releasing new rules this spring that would make U.S. money-market funds considerably less appealing to CFOs and treasurers investing corporate cash. The rules also cause yields on money funds to fall in an already low interest-rate environment. The proposed regulations will arrive in the first or second quarter, says Lance Pan, director of research for Capital Advisors Group, an investment adviser. The SEC's five commissioners would have to vote on the changes, which were recommended by the President's Working Group on Financial Markets in 2010. One proposal would require funds to adopt a 'floating' net asset value -- meaning the NAV of a fund would rise and fall daily, as happens with other mutual funds. That could scare companies away from investing in money markets, which currently have a fixed NAV of $1 per share, experts say. Another option on the table would require money markets to establish a 'capital buffer' to cushion against losses and redemptions, as well as adopt policies to prevent customers from withdrawing money in a market panic. Instead of taking out all their money at once, investors would have to redeem their shares piecemeal."
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