MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, December 14, 2012 BlackRock Pushes Its Own Plan for MMF Reform BlackRock [profile] has sent regulators a letter arguing for its own approach to money market fund reform. The world's largest money manager's letter to the Financial Stability Oversight Council contends that a floating NAV won't protect money funds during an investor run, and that requiring capital buffers would effectively destroy the product. Instead, BlackRock argued for a 1 percent fee on withdrawals during periods when the fund's liquidity drops below a certain level, according to Bloomberg and Reuters, who covered the proposal. “This approach preserves the benefits to all investors and borrowers, while also definitively stopping a run,” BlackRock execs wrote in the letter. Nevertheless, in a conversation with Bloomberg reporters, BlackRock vice chairman Barbara Novick left the door open a crack for the firm's support of a floating NAV proposal. "We're open to discussion on it," she said. The FSOC proposed began the process of pressuring the SEC to accept the floating NAV reform on November 13, and the 60-day comment period is ongoing, according to the Bloomberg story. Printed from: MFWire.com/story.asp?s=42370 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |