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Investment and Capital Markets Protection: New Rules for Money Market Funds

This act aims to protect citizens' investment choices by introducing new rules for money market funds. It allows funds to maintain a stable share price, which can increase predictability for investors. At the same time, the act explicitly prohibits government financial bailouts for these funds, meaning investors should be aware of the lack of government guarantees if a fund faces issues.
Key points
Money market funds can choose a valuation method that allows them to maintain a stable share price, potentially simplifying financial planning.
The act clearly prohibits the federal government from directly bailing out money market funds in case of financial distress.
Funds must disclose the absence of government guarantees in their advertising materials and prospectuses.
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Additional Information
Consumer Financial Choice and Capital Markets Protection Act of 2022
Print number: HR 9089
Sponsor: Rep. Williams, Roger [R-TX-25]
Process start date: 2022-09-30