The SEC is considering requiring that money market funds be priced daily and not fixed at $1.00.
What does this mean to the trust and securities industry? Plenty.
Most legacy applications that support money market funds processing are hardwired with the assumption that these funds will always be priced at $1.00. Some things to consider: client statements, cash projections and sweep processing, and dividend and interest payments.
The end game potentially is that money market funds require processing just like a mutual fund which could increase their overall cost of operation.
Stay tuned.
Contributing author: Craig Cook, President
April 25, 2012
Compliance, finance, Financial Regulation, Financial Regulators, Financial Services, Legacy Application, SEC, Uncategorized, Wealth Management