Under Section 120 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), if the Council determines that the conduct, scope, nature, size, scale, concentration, or interconnectedness of a financial activity or practice conducted by bank holding companies or nonbank financial companies could create or increase the risk of significant liquidity, credit, or other problems spreading among bank holding companies and nonbank financial companies, the financial markets of the United States, or low-income, minority, or under-served communities, the Council may provide for more stringent regulation of such financial activity or practice by issuing recommendations to a primary financial regulatory agency to apply new or heightened standards or safeguards.
In an effort to address threats money market mutual funds (MMFs) can pose to the financial system, the Council is proposing to use this authority to recommend that the Securities and Exchange Commission proceed with structural reforms of MMFs. There will be a 60-day public comment period on the proposed recommendations.
Public comments can be submitted at www.regulations.gov. Comments will be due on February 15, 2013.
Proposed Recommendations Regarding Money Market Mutual Fund Reform - November 13, 2012