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.

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Money market mutual fund regulatory reform

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