SEC Commissioners Oppose IOSCO Money Fund Consultation Report
- In an unusual step, three of the five Commissioners of the Securities and Exchange Commission have issued a statement critical of the publication of the consultation report on money market funds by the International Organization of Securities Commissions. The IOSCO consultation report, which was issued on April 27, shares IOSCO's views and seeks comments on the possible risks money market funds may pose to systemic stability and on possible policy options to address these risks. It takes the position that, although important reforms have already been adopted and implemented, several areas of risk remain, and the safety of money market funds is paramount for financial stability at large. The release of the Commissioners' statement implies that a majority of the SEC Commissioners have at least some reservations about the reform proposals in the consultation report.
The statement is at http://www.sec.gov/news/speech/2012/spch051112laatapdmg.pdf and is reproduced in full below, after my signature block. For my earlier post on the IOSCO consultation report, see
John M. Baker <JMB@...>
Stradley Ronon Stevens & Young, LLP http://www.stradley.com
1250 Connecticut Avenue, NW, Suite 500
Washington, DC 20036
FundLaw Listowner http://groups.yahoo.com/group/fundlaw
Statement concerning publication by IOSCO on April 27, 2012 of the "Consultation Report of the IOSCO Standing Committee 5 on Money Market Funds: Money Market Fund Systemic Risk Analysis and Reform Options."
On April 27, 2012, IOSCO published the above captioned Consultation Report without the concurrence of the U.S. Securities and Exchange Commission (the Commission).
We feel that it is important to state for the record that the Consultation Report does not reflect the views and input of a majority of the Commission. In fact, a majority of the Commission expressed its unequivocal view that the Commission's representatives should oppose publication of the Consultation Report and that the Commission's representatives should urge IOSCO to withdraw it for further consideration and revision. Accordingly, the Consultation Report cannot be considered to represent the views of the U.S. Securities and Exchange Commission.
May 11, 2012
Luis A. Aguilar, Commissioner
Troy A. Paredes, Commissioner
Daniel M. Gallagher, Commissioner
U.S. Securities and Exchange Commission