The Financial Services Institute is joining the call for the SEC to stop messing with the money market industry.

Advisor One reports that a joint letter from the Investment Company Institute and FSI was sent to the SEC on Tuesday, again calling for the regulators to drop the proposed changes because this will jeopardize the retirement savings.

According to the letter, the proposals, "would fundamentally alter the structure of money-market funds, rendering them far less desirable—if not unusable—for retirement savers and the plans they participate in.”

Dale Brown, president and CEO of FSI, told the SEC:

"FSI understands the SEC’s desire to protect investors and strengthen America’s regulatory framework, imposing a floating NAV on money-market funds, however, is simply not in the best interests of American investors or businesses...[The proposed changes] could unnecessarily undermine one of the key instruments that Main Street investors count on for stability and liquidity, while depriving businesses and governments of a crucial source of financing.”

Aside from ICI and FSI, signatories for the letter were American Society of Pension Professionals and Actuaries (ASPPA), American Benefits Council (ABC), The ERISA Advisory Council, SPARK Institute, Securities Industry and Financial Markets Association (SIFMA), U.S. Chamber of Commerce, and the National Association of Insurance and Financial Advisors (NAIFA).  

Edited by: HFD


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