Commentary

Money market mutual fund regulatory reform

Q&A on the SEC's new rules related to money market funds

By: Fidelity Investments

Updated: 4/2/2024

Overview

On July 12, 2023, the Securities and Exchange Commission (SEC)—the primary regulator of money market mutual funds (“money market funds” or “MMFs”) —adopted amendments to Rule 2a-7 and other rules that govern money market funds under the Investment Company act of 1940 (the “new rules” or “new 2023 rule”). The new rules are in response to stresses in fixed income markets at the onset of the COVID-19 pandemic in March 2020.
The new rules are being implemented in a phased approach that began October 2, 2023, and will continue through October 2, 2024.
Stability and safety have always been, and continue to be, our top priority objectives in managing MMFs. Fidelity Investments MMFs seek to provide security and safety for our customers’ cash investments. Our funds invest in money market securities of high quality and maintain high levels of liquidity.

Get the full white paper

Money market mutual fund regulatory reform

Next steps to consider

FIAM Money Market Solutions

Help meet liquidity and cash segmentation needs with money market solutions available for subadvised funds and commingled pools.

Learn more

Money market

Discover how our money market funds seek to provide stability, liquidity, and competitive returns for our customers.

Learn more

Investment-grade fixed income

Discover our full spectrum of investment-grade fixed income solutions, which leverage extensive resources to help deliver innovative strategies.

Learn more

For important information, see the full linked content.

1136619.1

97AA6181197E4930A1592E803459CCF5

Past performance is no guarantee of future results.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client's individual situation and reach out to an investment professional, if applicable.

Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management & Research Company LLC (FMR Co.) and Fidelity Management Trust Company (FMTC), respectively, are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. Investment advisory products and services are provided by FIAM LLC, or Fidelity Diversifying Solutions LLC (FDS), both U.S. registered investment advisers. FDS is also a CFTC registered commodity pool operator and registered commodity trading adviser. Products and services may be presented by FDC LLC, a non-exclusive financial intermediary affiliated with FIAM and FDS and compensated for such services. FMR Co. is a U.S. registered investment adviser. FMR Co. is adviser to the Fidelity family of mutual funds and ETFs.

Before investing have your client consider the funds', variable investment products', exchange-traded products', or 529 Plans' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or a summary prospectus, if available, or offering statement containing this information. Have your client read it carefully.

The use of the term "advisor(s)" throughout this site shall refer to both investment advisors and broker dealers as a collective term.