The President’s Working Group on Financial Markets released its report on Money Market Fund Reform Options, reigniting the controversial debate over floating net asset values, banking regulations such as insurance and a private emergency liquidity facility and meeting redemption requests in kind.

The report says the working group “agrees with the SEC that more should be done to address MMFs’ susceptibility to runs. The SEC’s new rules adopted in January 2010 address only some of the features that make MMFs susceptible to run, and more should be done to address systemic risk.”

Henry Shilling, senior vice president at Moody’s, told The Wall Street Journal he doesn’t expect the government to let up on floating NAVs. “The drumbeat continues. It’s not a subject that the industry will be able to sweep under the rug.” This will lead to industry consolidation, he said.

Moody’s estimates that the 20 largest money fund managers control 92% of the $2.8 trillion in money fund assets, up from 82% at the end of 2006

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