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Three SEC Commissioners Disavow IOSCO Report

As previously reported, the Technical Committee of the International Organization of Securities Commissions (IOSCO) issued in late April 2012 a report asking for comments on the possible risks money market funds may pose to systemic stability as well as on certain potential policy options to address these risks.  The report identified runs on money market funds as a potential systemic risk, and sought comments on potential regulatory options to address the perceived risk.

On May 11, 2012, three Commissioners of the SEC issued a public statement noting that the report had been published "without the concurrence of the US Securities and Exchange Commission," and that the report "does not reflect the views and input of a majority of the Commission."  The statement went on to state that "a majority of the Commission" had advised that the SEC representatives to IOSCO should "oppose publication" of the report and should "urge IOSCO to withdraw it for furher consideration and revision."

The three Commissioners signing the statement were Commissioners Luis Aguilar, Troy Paredes, and Daniel Gallagher.

The complete statement can be found here:  http://www.sec.gov/news/speech/2012/spch051112laatapdmg.pdf