U.S. Chamber Calls on SEC to Ensure Proposals Preserve, Strengthen Money Market Mutual Funds

Critical short-term financing for businesses, states, and cities at stake

WASHINGTON, D.C.—The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) President and CEO David Hirschmann issued the following statement today responding to the Securities & Exchange Commission’s (SEC) release of proposed rules to reform money market mutual funds (MMMFs):

“As we sort through the SEC’s proposal on MMMF reform, we will evaluate it based on the merits.  Any changes to existing regulations should strengthen MMMFs while preserving their utility as an important cash management tool and a critical source of short-term funding for businesses, states, and cities.

“We remain concerned that a floating NAV will weaken rather than improve the product.  This is particularly true if the myriad accounting, tax, and operational obstacles are not fully addressed before a rule implementing a floating NAV is finalized.  We urge the SEC to work in tandem with other agencies and governing bodies to work out these issues.

“We can’t afford to undermine MMMFs, sharply reducing short-term financing for businesses, states, and cities while derailing our economic recovery.”

Over the past 18 months, a broad and diverse coalition of organizations and individuals, ranging from retailers and manufacturers to universities and colleges to mayors and state treasurers, spoke out against changes to MMMFs that would have led to harmful consequences for them.

Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.