In July 2014, the U.S. Securities and Exchange Commission (SEC) – the primary regulator of money market mutual funds – issued new rules for further regulation of money market mutual funds that are to be implemented by October 2016. The new rules will change how money market funds are invested, priced, operated, and acted upon when financial markets are under stress.
Given these revised rules, coupled with a low interest rate environment, contractors that sponsor 401(k) retirement plans should review their stable value investment options and determine the impact on their plan types.
New Money Market Fund Rules Require Plan Sponsor Review
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About the Authors
John Higgins
John J. Higgins, CFP, AIF, CFS, is Managing Partner at Patterson Smith Associates, LLC and a Retirement Plan Consultant with Commonwealth with more than 20 years’ experience in the financial services industry.
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Kelly A. Kurtz, CPC
Kelly A. Kurtz, CPC, is Director of Retirement services at Patterson Smith Associates, LLC.
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