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WSJ: Money-Fund Plan Gets Cold Shoulder

Yesterday, a Wall Street Journal article discussed individual investor concerns over the "holdback" proposal being considered by the SEC.  Under this proposal, investors who wish to sell all of their holdings in a money market fund would only be able to receive 97% or 95% of their money immediately.  The remaining would be returned to them after 30 days.  The article cites a recent Fidelity survey of individual-investor customers that found that 23% said they would stop using money market funds if 3% of their investment were held back for 30 days.  The SEC proposal being floated by the SEC also contains other changes to money market fund regulations, including requiring a floating NAV and subjecting the funds to capital requirements.  Industry experts warn that funds are still struggling in a low-yield environment and that many firms could be forced to close their money funds if the new rules are adopted.