Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Friday, May 3, 2013

White Speaks on Global Financial Regulation

SEC Chair Mary Jo White, in her first public speech, addressed the Investment Company Institute today and focused on Regulation in a Global Financial System.  While some had speculated that she would take this opportunity to address mutual fund reform, and specifically money market funds, in fact she said little on the subject in her prepared remarks: 

As the SEC works to develop and propose meaningful money market fund reform, our goal is to preserve the economic benefits of the product while addressing potential redemption pressures and the susceptibility of these funds to runs – runs in which retail investors are especially likely to suffer losses.

While I’m sure that you would like me to say more about this today, I’ll stop there as the staff and Commissioners are actively engaged in discussions designed to yield an appropriate and balanced proposal in the near future. 

I am confident that the ultimate result of this process will take into account the views of Commissioners who vary in background and perspective, but share the goals of protecting investors and promoting market efficiency and capital formation.  The SEC regulatory process is grounded in sound economic analysis and is well-informed by public comment, including helpful comments from the ICI fund investors and others with important and relevant perspectives on money market funds.   

This is the process the SEC will bring to bear as it considers proposing money market fund reform.  And I hope that ultimately it will lead to a good, investor-oriented result that has been informed by and can be shared with other regulators in the global marketplace.

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