Compliance, Enforcement, Mutual Funds - ETFs

SEC Adopts Money Market Fund Reforms and Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers

July 12, 2023 – The SEC today adopted amendments to certain rules that govern money market funds under the Investment Company Act of 1940. The amendments are designed to enhance the resilience and transparency of money market funds, particularly during periods of market stress.

Significant Changes

One of the key changes is the elimination of the “gate” provision, which allowed money market funds to temporarily suspend redemptions. This provision was designed to prevent investor runs on money market funds, but it was also seen as a potential source of instability. The new rules will instead require money market funds to impose liquidity fees if their weekly liquid assets fall below a certain threshold. This will help to ensure that funds have sufficient liquidity to meet redemptions even during periods of market stress.

Additional Changes

The amendments will also increase minimum liquidity requirements for money market funds. This will provide a more substantial liquidity buffer in the event of rapid redemptions. Additionally, the amendments will require money market funds to provide more detailed information about their liquidity positions in their Form PF filings. This will help investors to better understand the risks associated with money market funds.

The SEC’s amendments are a significant step forward in the effort to protect investors in money market funds. The new rules will make funds more resilient and transparent, and they will help to prevent investor runs during periods of market stress.


Keywords: Form PF, money market funds, SEC, liquidity, resilience, transparency


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Sallah Astarita & Cox, LLC - Securities Litigation Attorneys - former SEC Staff Attorneys and Brokerage Firm Counsel representing issuers, advisors and investors nationwide in securities investigations, disputes, and arbitrations, nationwide. Call 212-509-6544.

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