Money Market Reform and Investor Impact
Money Market Reform and Investor Impact

Money Market Reform and Investor Impact





Money Market Reform and Investor Impact

How TC Wealth Partners is responding to the changes.

In response to the financial crisis of 2007-2008, the Securities and Exchange Commission has introduced new regulations on money market funds to improve the stability of money markets and prohibit dramatic cash redemptions in times of market turmoil. These regulations have created new classifications for money market funds. Based on its classification, a fund may now have the ability to implement redemption fees or liquidity gates in times of extreme volatility. Some funds will now also be subject to a floating, rather than stable, NAV (net asset value). There is one fund designation – government – that will not be impacted by the changes listed above. These rules were introduced in July 2014 and will go into full effect in October 2016.

Trust Company of Illinois has carefully evaluated these new regulations and its impact on client portfolios. We believe that our clients’ money market position should always be liquid and never less than a dollar. For that reason, for the small number of clients impacted by these regulations, we’ve chosen to move assets into government money market funds. These changes are for regulatory purposes only and there will be no material impact on any client accounts. If you have any questions, please don’t hesitate to contact your Wealth Advisor.

The Trust Team:

  Wealth Management Team 

  Trust Services Team 

  Retirement Plan Services Team 

  Investment Committee 

Tags:  Investing, Investment Decisions, Investment Options, Money Market Funds, Money Market Reform, SEC Regulations, Volatility

Note:  The content of this article is for guidance and information purposes only and is not intended to be construed as advice. Information provided is not intended to provide investment, tax, or legal advice.