In the debate over the future of money market funds, the ICI just came down firmly against one of the SEC's proposed reforms, the floating NAV. On Tuesday the mutual fund industry trade group's general counsel, Karrie McMillan, urged the regulatory agency not to require adoption of floating NAVs. The move follows similar comments last month from two fund titans with massive money market assets, Fidelity and Vanguard.

Paul Schott Stevens The Investment Company Institute president, CEO

"Forcing funds to adopt a floating NAV would introduce new and significant risks to the financial system without any offsetting gains," said ICI president and CEO Paul Schott Stevens in a news release issued Wednesday.

The ICI's comment letter also laid out detailed responses to a number of other proposed money market fund regulations put forward by the SEC in June.

The letter follows the news last week that DWS Investments is preparing a floating NAV money market fund, the DWS Variable NAV Money Fund. 

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