Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fidelity Favors Money Fund Redemption Fees Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, March 13, 2013

Fidelity Favors Money Fund Redemption Fees

News summary by MFWire's editors

Fidelity Investments [profile] has declared that it would support charging a 1 percent redemption fee on large institutional money funds during times of extreme market stress, according to Reuters.

The newswire notes that the $2.5 trillion money fund industry has been battling U.S. regulators over reform proposals that Boston-based Fidelity and other providers say could wreck the industry. But in recent weeks, Fidelity has acknowledged that institutional prime money market funds are vulnerable to large, abrupt redemptions in times of financial turmoil.

Reuters reports that in a speech planned for Tuesday afternoon, Nancy Prior, stated in her prepared remarks that "We believe that halting redemptions or charging a fee when liquidity is scarce is the only effective means of stopping large, sudden outflows."

In the prepared remarks, she adds that "this would be a far more effective means of addressing a clearly defined issue within one specific segment of the (money market fund) product."

The remarks were planned for the iMoneyNet Investor conference in Orlando, Florida. Fidelity manages more than $430 billion in money fund assets, according to Reuters.

In a separate story, Reuters reports that SEC chair nominee Mary White says that the securities regulator take the lead on money fund reform and not the Financial Stability Oversight Council

Edited by: Tommy Fernandez


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use