The advocacy website, PreserveMoneyMarketFunds.org sent an e-mail on Friday quoting comments from Jim Lazarus, Senior VP, Public Policy, San Francisco Chamber of Commerce, "The SEC's floating NAV proposal, if implemented, would diminish businesses' choices as investors, without achieving regulators' goals of improving the stability of financial system. Thus, forcing to float would provide no benefit while making it harder for my business and others to manage cash." The e-mail says, "In his comment letter to the Securities and Exchange Commission, San Francisco Chamber executive Jim Lazarus warned that forcing a floating net asset value (NAV) on money market funds (MMFs) will harm businesses across the country. Chief among the reasons outlined in his letter is the negative aspect that a floating NAV would have on cash flow management." "We use money market funds as the most flexible way to invest and accumulate cash in anticipation of short-term needs. The convenience and simplicity of MMFs—based on their stable share price—make these funds useful for our cash management," Lazarus wrote. The e-mail adds, "The proposed rule issued by the U.S. Securities and Exchange Commission could undermine the key features of money market funds. For businesses, state and local governments, and nonprofits, "floating NAV" funds would create huge headaches -- accounting issues, tax complications, and even limits on their ability to use money market funds for cash management. Organizations from throughout the nation, representing business, municipalities and states, non-profits, and individual investors have rallied once again to oppose such changes to money market funds. Many already have directed letters to the SEC's comment file voicing their concern. It's time to make your voice heard also. The public comment period on the SEC's proposal is open through September 17. Floating NAVs for money market funds will negatively affect your business or community, so let policymakers in Washington know. Visit www.preservemoneymarketfunds.org to send a letter to the SEC and to your elected representatives in one simple click. If you would like to send your own letter directly, e-mail rule-comments@sec.gov and include File Number S7-03-13 in the subject line. NOTE: The Investment Company Institute and the U.S. Chamber of Commerce have launched a series of briefings about the proposed changes to money market funds. The first is today, Monday, August 12, 10 to 11 a.m. (PT), at the Offices of Gibson Dunn, 555 Mission Street, San Francisco, CA 94105-2933. The second is Thursday, August 15, in Chicago, from 2 to 3 p.m. (CT) at the Offices of Mayer Brown, 71 South Wacker Drive, Chicago, IL 60606. If interested in attending, please contact Scarlett Rajski at srajski@mww.com or (201) 964-2442."
