WASHINGTON: The US Chamber of Commerce is ramping up its outreach to stop changes to money market fund regulations.
The US Securities and Exchange Commission last updated money market regulations in 2010, which the Chamber said helped to strengthen the funds' ability to withstand turmoil in the markets. However, the SEC has indicated it could make new proposals this summer.
The Chamber of Commerce is arguing that additional regulatory changes “would almost certainly lessen the viability and attractiveness of these funds.”
To stop new regulation, the trade group is planning to increase outreach to the SEC as it forms proposals. It is writing letters to the federal agency and conducting Capitol Hill and SEC staff briefings, as well as social media outreach. The Chamber is also producing train-station posters for near the SEC's offices promoting a microsite about regulation, said Alice Joe, executive director of the Center for Capital Markets Competitiveness, a part of the Chamber.
The organization declined to say if it is working with an agency on the initiative.
Tyson Foods is one company backing the Chamber's stance on the issue.
“Money market funds are an important investment tool for companies like ours, especially for effectively managing some of our short-term cash,” said Gary Mickelson, director of PR at Tyson. “We don't see a reason to change the current rules.”
The Chamber worked with Adfero Group to relaunch FreeEnterprise.com in January. It also created a Facebook Open Graph application to encourage its fans on the social network to stand up for its positions last month.
In March, Katie Wilson left her role as senior director of communications and strategy at the Chamber to join the National Retail Federation as VP of communications.