SEC Seeks Public Input On Possible Money Market Fund Reforms

• The U.S. Securities and Exchange Commission is kicking off a renewed effort to overhaul rules around money market funds, soliciting public input on how to reform the sector.
• The consultation, announced Thursday, suggests the SEC wants to kick-start languishing efforts to address the sector, which has twice needed government intervention in recent years to stabilize after investor runs.
• Specifically, the agency is seeking comment on a report issued by a Treasury-led working group in December, which called for significant policy changes to address weaknesses in the market.
• The report laid out a number of reform options, including setting stricter rules around fund redemptions, or higher capital buffers for such funds, but did not advocate any particular approach.

(Source: Reuters)