Money Market Fund Regulatory Resource Center

Visit this page regularly for the latest updates on money market fund reform.

  • Enhanced stress tests for money market funds 3-30-17 - The Securities and Exchange Commission (SEC) requires money market funds to conduct enhanced – or more rigorous – stress tests to help assess the stability of a fund’s liquidity and principal in reaction to hypothetical stress situations. This is part of the SEC’s effort to not only further minimize the risk of runs but also reduce disparities in the quality and comprehensiveness of stress tests across money market funds.
  • Tax relief for floating-NAV money market funds 3-30-17 - To reduce the burden of tax compliance, the U.S. Treasury and the IRS issued final guidance that provide a simplified method of tax accounting for floating-NAV money market funds (MMFs). These regulations apply to institutional money market funds, both prime and tax exempt. Government and retail money market funds are not affected because they continue to transact at a stable $1.00 NAV.
  • Fees and gates: A tool intended to protect money market fund shareholders 3-30-17 - As of October 14, 2016, money market fund board of directors (boards) have the discretion to impose liquidity fees and redemption gates (temporary suspension of redemptions) on prime and tax-exempt money market funds. This new rule is part of the latest effort by the U.S. Securities and Exchange Commission (SEC) to strengthen money market funds. Specifically, fees and gates are designed to reduce the incentive for shareholders to sell ahead of other shareholders in a liquidity crisis and to give money market fund boards more tools to use in the case of a future crisis.
  • Prime money market funds: Reality check 3-20-17 - Prime money market funds operated much as they did prior to October 2016 and remain an effective cash management tool. Some institutional investors may still be feeling anxious about the money market reform measures implemented in 2016. Fees and gates? Floating net asset values (NAVs)? A quick review of the facts reveals that such anxiety is unwarreanted. In reality, prime money market funds didn’t change dramatically. This guide summarizes why investors can breathe easy.
  • Prime money market fund NAV volatility will likely remain low 12-31-16 - Institutional prime money market funds began transacting at market-based, or floating, net asset values (NAVs) on October 14, 2016. This was one of the Securities and Exchange Commission’s (SEC’s) main rule changes that took effect in 2016, and it is intended to help prevent runs on money market funds by making it clear to shareholders that the value of these institutional money market funds may fluctuate.
  • Updated: Wells Fargo announces effective dates for changes to certain money market funds 7-26-16 - This product alert was first issued on February 19, 2016. It has been updated with a new variable NAV conversion date (on or about October 5, 2016), clarification on variable NAV fund features, and new disclosure. In May 2015, Wells Fargo Funds announced its plan to restructure its money market fund lineup in response to the new U.S. Securities and Exchange Commission (SEC) regulations that take effect in October 2016. The Wells Fargo Funds Board of Trustees has now approved the restructuring and related effective dates, and this product alert explains the upcoming changes.
  • Wells Fargo announces effective dates for changes to certain money market funds 2-19-16 - In May 2015, Wells Fargo Funds announced its plan to restructure its money market fund lineup in response to the new U.S. Securities and Exchange Commission (SEC) regulations that take effect in October 2016. The Wells Fargo Funds Board of Trustees has now approved the restructuring and related effective dates, and this product alert explains the upcoming changes.
  • SEC removes references to credit ratings from Rule 2a-7 9-25-15 - On September 16, 2015, the Securities and Exchange Commission (SEC) approved amendments to Rule 2a-7 to remove references to credit ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs) and replace such references with a new standard of creditworthiness.
  • New rules for money market funds 12-23-14 - The U.S. Securities and Exchange Commission (SEC) voted in July 2014 to approve amendments to Rule 2a-7 of the Investment Company Act of 1940, which governs money market funds. The major changes—floating net asset values (NAVs) for institutional prime and tax-exempt funds, liquidity fees, and redemption gates.
  • Perspective paper: Our money market funds compare favorably with the new rules - August 2014 8-29-14 - When managing our money market funds, we seek to provide shareholders stability of principal and a high degree of liquidity. As we move toward implementation of the new rules required by the Securities and Exchange Commission (SEC), we believe our funds are prudently managed in a manner that reduces risks to shareholders and to the greater financial system—risks that the SEC intended to address with its recent amendments to money market fund regulations.
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