Fasten those seat belts people. Make sure that your you-know-what is in the upright position. A second effort to overhaul rules governing the $2.6 trillion money-fund industry will be offered by the U.S. Securities and Exchange Commission before the end of March, SEC Commissioner Daniel M. Gallagher told Bloomberg.
Regulators have been working to overhaul rules governing the money-fund industry since the September 2008 collapse of the $62.5 billion Reserve Primary Fund. A proposal supported by former SEC Chairman Mary Schapiro to force money funds to choose between a floating share value or a combination of capital buffers and withdrawal restrictions was dropped in August after failing to win support from a majority of commissioners.
No date has been set for a new proposal to reform money funds, SEC spokesman John Nester said yesterday. Under the direction of SEC Chairman Elisse Walter, the SEC staff is discussing reform options with commissioners, he said….