Money-Market Rules Set to Change
SEC chairman Mary Schapiro said in an open meeting on Wednesday that the net asset value, or NAV, of money-market funds could be floated.
Kiplinger News
After money-market fund prices "broke the buck" and dipped below $1 in September 2008, the Securities and Exchange Commission has been studying how best to change the rules regulating the funds.
Changes to money-market mutual fund rules may be forthcoming, according to the Securities and Exchange Commission.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
SEC chairman Mary Schapiro said in an open meeting on Wednesday that the net asset value, or NAV, of money-market funds could be floated. That change would mark a shift from the longstanding policy of maintaining the funds' NAVs at $1.
The funds are a source of liquidity for both corporations and individuals. By investing in high-quality debt instruments set to mature in no more than 13 months, they attempt to provide stable returns and to never lose money, i.e., to keep their NAV higher than $1.
But the funds' stability -- a major selling point for issuers -- was called into question after the collapse of Lehman Brothers in September 2008. The oldest money market fund, Reserve Primary Fund, broke the buck after it had to write off Lehman debt, and a run on the funds ensued.
Since that incident, the SEC has been considering rule changes. Its rules would "improve liquidity, increase credit quality and shorten maturity limits," the commission said.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
The $33,000 Retirement: One Man's Surprising Path to Financial Freedom at 61
Forget what society tells you, even with less than $1 million, you can be happy in retirement.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online Bargains
Feature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025
Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?
insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know So Far, Plus Early Deals
Amazon Prime Here are the key Amazon Prime Day dates and details you need to know, plus some of our favorite early deals to shop ahead of the sale.
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.