October 6, 2016
What is changing?
The Securities and Exchange Commission (SEC) is amending rules on money market funds, including restricting some funds to retail investors only.
When is the effective date and which funds will be impacted?
Money Fund Reform is effective October 14, 2016. However, many of our Cash Management Choice managers have compliance dates in advance of the SEC compliance date. U.S. money market funds with prime, municipal, tax-exempt and state-specific portfolios that wish to maintain a CNAV of $1 per share will become retail funds and will only be available to retail investors or natural persons. Money market funds that operate using a Fluctuating NAV (FNAV) will not be available on the sweep platform. Money market funds with government portfolios, such as Treasury funds, are excluded from this rule and have no eligibility restrictions.1
To help your firm prepare for money market fund reform, an updated list of money market funds can be found in Marketing Center via NetX360®. Reports helping you identify the impacted accounts are available through Report Center in NetX360.
To learn more, contact your Account Manager or Relationship Manager.
Note: Pershing Advisor Solutions clients will not be impacted by these changes.
1 These changes are applicable only to U.S. money market funds and do not impact offshore money market funds or bank deposit products that are available as sweep options on NetX360.