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Aguilar Could Support Money Market Fund Reform

Following the release of an SEC study on money market funds, SEC Commissioner Luis Aguilar told Reuters last week that he is now open to further money market fund reforms.  The Commissioner said that he could potentially vote for a reform proposal containing either of the two options suggested by SEC Chairman Mary Schapiro this summer (floating NAV or a required capital buffer, possibly coupled with holdback provisions), as long as they were substantiated by findings in the study.

Chairman Schapiro has been a long-time advocate for money market fund reform, but is leaving the SEC later this month.  In order for the Commission to formally propose changes to the regulations, at least one Republican Commissioner would have to be willing to support a proposal -- neither of who has publicly commented since the study was released.  Nevertheless, Aguilar told Reuters he is optimistic the agency can make progress on the issue in early 2013.