SEC's ten Siethoff on MMFs at MFIMC
The ICI's 2021 Mutual Funds and Investment Management Conference kicked off on Monday and continues Wednesday afternoon (w/Acting SEC Chair Allison Herren Lee speaking). (See our March 16 News, "ICI's Pan Defends Money Funds at MFIMC; Reforms Have Big Drawbacks.") On Monday, a panel entitled, "Developments in Investment Management: Keeping Up With Regulators" also featured some comments on potential MMF reforms. The SEC's Sarah ten Siethoff commented on a timeline, "I can tell you certainly that determining recommendations for further reform is an area that's going to be a huge focus for staff work this year.... We put out a request for comment on the President's Working Group report that listed a number of potential options for reform and the comment deadline for that is next month. We are definitely looking forward to receiving comments there.... Honestly, what's welcome is not just comment on options that we put forth, but if people have other ideas.... This has been a thorny subject for a long time, as I'm sure many in the audience know. So, we're certainly open to any options and ideas that people have for solving this perennial problem." She continued, "I think, certainly, resilient money market funds and resilient short-term funding markets are really a key foundation for economic activity. Every time we have one of these events, we learn what a central role the short-term funding markets play in our system and how much they form that bedrock. So that really is our focus, and I imagine everyone's focus is making sure that they get to a more resilient place.... I've done now two PWG reports on money market fund reform options. I hope to not do a third!" Finally, ten Siethoff adds, "I'm really looking forward to engaging people. Obviously, those options listed in the report are just options. Some of them we've requested comment on before, but every event has a little bit that's new and different. I think what happened in March, 2020 -- yes, there was another run, but it was a little bit different than [in the] past. So, some of it we're looking for a fresh perspective in light of that. Some are obviously totally new options, looking in light of what happened last March. I really just encourage people to engage on this topic because it's certainly going to be a focus for the commission." See the SEC's Request for Comment here, and see these Crane Data News pieces: "Fermat Comments on PWG Report" (3/10/21); "Professor Gordon's Nutty PWG Comments: Backs Buffer; Weekly Holdings" (3/3/21); and, "SEC Wants Comments on PWG Report" (2/8/21).
