​ New Sweep Regulations to Help Investors; Hurt Brokerages, Banks. Yesterday'​s "​Link of the Day" cited an Investment News article on proposed SEC regulations on brokerage cash sweeps. We took another read through the "Amendments to Financial Responsibility Rules for Broker-​Dealers" and found the news is unabashedly good for investors and money funds, and very bad for brokerages with banks. After years, the SEC is finally addressing the trend of brokerages sweeping client cash into lower-​yielding banks instead of money funds with a host of investor authorization requirements, waiting periods, quarterly disclosures, and disclosures. Brokerages would have to tell investors exactly what options are available and how to move back into competitively priced cash options, a move sure to be a boon for the higher-​yielding money funds.

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