SEC Money Market Fund Reforms Miss Target

Thanks to Chairwoman Mary Schapiro, if your clients' money market funds are threatening to break the buck, the board of the fund may elect to suspend redemptions.

By a 4 to 1 vote, the SEC today "reformed" money market funds --- to make them safer for you and me. But, thanks to Chairwoman Mary Schapiro, if your clients' money market funds are threatening to break the buck (as happened last year during the crisis), the board of the fund may elect to suspend redemptions.

Okay, so now the SEC can decide when your client may take his or her money out of an investment? (Think of this as auction-rate-securites rulings in reverse --- the ones that SEC made that forced brokerages to disgorge frozen ARS assets to retail investors.)

For more, please go to <a href="http://www.vonaldo.com" target="_new">VonAldo.com</a>, the blog of Registered Rep. Editor-in-Chief David A. Geracioti.

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