MarketWatch Aguilar Q&A
MarketWatch writes "Aguilar Q&A on money-fund reform". The article says, "Luis Aguilar wants to clear up a "persistent misconception" about the Securities and Exchange Commission's efforts to increase regulation of the $2.7 trillion money-market-fund industry. In an email interview with MarketWatch, Aguilar, a Democratic commissioner at the agency, rebutted assertions that a majority of the commission has been opposed to considering additional capital buffers or other reforms for the industry." Aguilar comments, "First, there seems to be a persistent misconception that a majority of the commission opposed consideration of money-market-fund reforms. This is simply not true. Speaking for myself, my consistent position has been that the commission, as the independent agency responsible for protecting investors and overseeing the U.S. securities markets, had an obligation to make sure it was fully informed on this issue. Specifically, the commission had to understand the causes of investor redemptions from money-market funds in 2008, the impact of the commission's 2010 amendments to strengthen the principal rule that governs money-market funds, and the potential impact of additional reforms on investors and the cash management industry as a whole. To that end, I had for some time requested the SEC staff to conduct a study on these issues, a request in which a majority of the commission concurred.... The study has allowed productive discussions to ensue, and the staff is currently developing a series of recommendations regarding potential reforms. I look forward to considering the staff's recommendations, and I am optimistic that the commission will move forward in an expedited manner."
