It’s no secret that the Investment Company Institute is opposed to proposals by the Securities and Exchange Commission to float the net asset value of money market funds, and ICI President and CEO Paul Stevens today reiterated the group’s stance on the SEC’s proposal.

Stevens, speaking at a symposium in Baltimore, said that: “Simply put, forcing funds to float their NAVs doesn’t address the problem that most preoccupies many regulators—how to avert heavy redemptions out of money market funds.”

Under a floating NAV, Stevens said that “corporate America could see a significant reduction in the supply of short-term credit,” and “the pool of capital that state and local governments use for financing vital needs will shrink or dry up.”

The SEC is also currently considering combining the floating NAV and the liquidity fees and gates proposals into a single reform package.

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