- On July 23, 2014, the Securities & Exchange Commission (SEC) approved changes to the rules governing US money market funds under the Investment Company Act of 1940, as amended (the 1940 Act). The amendments were approved by three out of the five SEC Commissioners and come as the final step following a proposed rule release in June 2013.
- The changes to the rules vary based on the type of fund (i.e., government vs. prime vs. municipal/tax-exempt) as well as the type of investor (i.e., institutional or retail). All funds will be required to make additional disclosures to the SEC.
- The changes only apply to US-registered money market funds.
- The approved changes have no immediate impact to money market funds. It will still be another two years until the compliance date for the imposition of floating net asset value (NAV) and redemption fees and gates for institutional prime and institutional municipal/tax-exempt funds.
- Following this announcement, GSAM will continue to manage money market funds in the same way we have historically, with a conservative risk-managed approach.
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