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Joan Swirsky Quoted in BoardIQ on New Money Fund Regulations

"Responding to Money Fund Changes, Fido Takes the Lead"

February 24, 2015
Press Clippings

Joan Swirsky weighs in on Fidelity's decision to convert prime money market funds to government money funds to avoid consequences of new regulation that will take effect next year.

In anticipation that many fund complexes will follow, talks are surrounding shifting interest rates and changes in investor demands.

“In terms of restructuring the fund or not to a floating NAV, there will need to be an early education process for directors. What does it mean to basis-point round? Are the funds operationally prepared to do what is necessary?” says Joan Ohlbaum Swirsky, counsel at Stradley Ronon. “I would think that a question a director would want to ask is, ‘how is the adviser assessing demand?’”

“I can see a board in a situation where they think a 2% fee is good at first with a plan to reduce it to 1% in a couple days,” she says. “But if the intermediaries are unable to change the fee, that’s another factor to consider.”

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