Fidelity Investments said on Tuesday the U.S. Securities and Exchange Commission's push to change the long-held pricing convention of money market funds grossly underestimates the scope of the reform.
Boston-based Fidelity, the largest money market fund provider in the world, said the pricing reform put forth by the SEC would affect about 65 percent of money fund assets.
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"The (SEC) staff estimated that only 30 percent of all (money market fund) assets would be subject to a floating (net asset value) if adopted by the SEC," Fidelity said in a comment letter. "The SEC grossly underestimated the industry assets that would be impacted, which we estimate to be closer to 65 percent of all (money market fund) assets."