In July 2014, the U.S. Securities and Exchange Commission issued new regulations for U.S.-domiciled money market funds (MMFs). These primarily impact Institutional Prime and Municipal MMFs as Government and U.S. Treasury MMFs (both retail and institutional) are exempt from these structural reforms. There is a two-year transition period to allow fund companies and investors time to adapt with implementation scheduled for October 2016.
Corporate clients are asking how these regulations impact them: What is needed to “adapt” to these new regulations? And must our investment policies be revised? This paper represents Treasury Strategies’ suggested approach for corporate investors who are currently permitted to use Institutional Prime and Municipal MMFs in their short-term investment portfolios.