SEC Approves Tighter Money Fund Rules – Plan Allows Money Funds to Temporarily Block Investors from Withdrawing Money in Times of StressWSJ

SEC Votes Through Money Market Exit Gates Zero Hedge

• U.S. SEC poised to adopt reforms for money market funds Reuters
• Fund managers on alert over money market shake-up FT
• ALERT: Pull Your Money From Money Markets Now! Economic Policy J

HIDDEN TAX INCENTIVES

In conjunction with Wednesday’s release, the U.S. Treasury department is expected to relax certain accounting burdens on the reporting of gains and losses “to ease the transition to a floating share price”.

CREDIT RATINGS REMOVED

Separately, the SEC voted unanimously to re-propose a plan, originally floated in 2011, to purge references to credit-rating firms embedded in the SEC’s money-fund rule. The change is a requirement of the 2010 Dodd-Frank financial law that requires federal agencies to scrub their rule books of references to credit ratings, forcing them to find new measures to help investors assess creditworthiness.

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