Rule Changes on Money-Market Funds: What Investors Need to Know

via Wall Street Journal — This article features commentary from Samuel Henson, Vice President of Lockton Retirement Services.

If you have cash parked in a money-market mutual fund in a 401(k) or similar plan, you may want to start preparing for sweeping changes on the horizon.

Effective Oct. 14, 2016, the Securities and Exchange Commission plans to put in place new rules that will require certain funds to abandon their stable $1-a-share value, and allow some funds to temporarily suspend redemptions or impose liquidity fees on investors withdrawing assets during volatile periods.

The changes could affect millions of Americans, including those who invest on average 4% of their assets in money-market mutual funds in a 401(k) or similar plan. The new rules also apply to money funds held in individual retirement accounts and taxable accounts.


About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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