Amendments to Rules Governing Money Market Funds
On July 12, 2023, the Securities and Exchange Commission (SEC) approved amendments to Rule 2a-7 of the Investment Company Act of 1940, which governs money market funds.
Key takeaways
- Minimum daily and weekly liquid asset requirements for all money market funds were increased.
- Temporary redemption gates and the link between portfolio liquidity and liquidity fees were removed.
- A new liquidity fee framework was imposed.
- New measures to address potential negative interest rate environments were introduced.
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