In a letter dated April 17, 2012 to SEC Chairman Mary Schapiro, House Financial Services Committee Chairman Spencer Bachus and Vice Chairman Jeb Hensarling expressed concern about additional money market reforms advocated by Chairman Schapiro. The letter points out that the SEC made significant changes to the rules governing money market funds in 2010 following the financial crisis, and urges the SEC to determine whether further reforms are necessary by conducting "a thorough analysis of the money market fund industry, including the effectiveness of the 2010 amendments to Rule 2a-7."
Congressmen Bachus and Hensarling state that such a review is important for investors and would help ensure that the SEC has sufficient economic analysis to withstand potential judicial review of further reform. The letter also reminds Chairman Schapiro that the SEC is not charge with making investments without risk, but rather with providing material information to allow investors to understand their investments. As a result, the letter suggests that rather than fundamental changes to money market funds, enhanced disclosure may be an option to help investors better understand the nature of their investments.