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IOSCO Recommendations for Money Market Fund Reforms

In early October, the International Organization of Securities Commissions (IOSCO) published a final report recommending fundamental changes to money market funds, both in the US and internationally.  In particular, the report recommends that regulators should require money market funds to have a floating NAV, and that the funds should hold a minimum amount of liquid assets. 

IOSCO is the international policy forum for securities regulators.  The IOSCO board is made up of securities regulators from 32 countries, and includes a representative of the US SEC, currently SEC Commissioner Elisse Walter.  Its reports are not binding upon the US regulator.  In response to an earlier draft of the report, three SEC Commissioners issued a public statement to the effect that the draft paper did not reflect the views of a majority of the SEC Commissioners.  That statement, signed by Commissioners Aguilar, Paredes and Gallagher, urged IOSCO to "withdraw the report for further consideration and revision."  The final IOSCO paper contains a note that “a majority of the Commissioners of the US Securities and Exchange Commission did not support” publication of the report.

The IOSCO report can be found here: