SEC May Eliminate Money Funds’ $1 NAV

The Securities and Exchange Commission is considering requiring money market funds to set aside 1% to 3% of their assets and lifting the $1 net asset value, sources with knowledge of the discussions told Bloomberg News. The SEC may require any fund that did not set aside the capital buffer to revert to a floating NAV within 60 days.

Many of these ideas, submitted to the SEC in January, are from university economists who call themselves the Squam Lake Group.