|By PR Newswire||
|September 26, 2012 02:38 PM EDT||
MINNEAPOLIS, Sept. 26, 2012 /PRNewswire/ -- On September 26, 2012, The Derivative Project, a Minnesota based, independent, non-partisan, retirement investor advocacy organization, announced today it has submitted a request to the Securities and Exchange Commission, Chairman Shapiro, for immediate action on two requests to protect retirement savings in money market funds that carry systemic risk, as outlined by the Federal Reserve Bank of New York in an April 2012 Report on "Shadow Banking."
In this request, The Derivative Project stated, "While a study, by the Financial Oversight Stability Council on how best to control the systemic risk that is inherent in the non-transparent money market mutual fund industry is being conducted, it is imperative that our nation's retirement savings be removed immediately from all money market mutual funds, carrying systemic risk, and moved to FDIC-insured sweep options. The yield will be greater for retirement investors in these sweep options and the risk will be less for the retirement investor."
Further, The Derivative Project requested that in addition to the SEC mandating that Retirement Fund providers replace money market mutual fund options with FDIC insured sweep accounts, a request was made to allow retirement savers at 401k's and 403B's (and SEP and Individual Retirement Accounts) the option to invest directly in FDIC bank CDs in the maturity of their choice or in U.S. Treasury securities, at Treasury Direct, with no additional fees charged by the retirement service provider. Retirement savers, in this historically low interest rate environment, deserve direct access to money market instruments; such as FDIC insured bank CD's and Treasury Direct, to ensure a positive return without systemic risk.
The Derivative Project also submitted this request for comment by each member of the SEC Investor Advisory Committee at their next regularly scheduled meeting, September 28, 2012. The Derivative Project will publish the Investor Advisory Committee Member's responses, following the Meeting.
The full text of this SEC Request will be made available at The Derivative Project's website www.thederivativeproject.com.
The Derivative Project is a non-partisan, Minnesota - based retirement investor advocacy organization that seeks to ensure the long-term stability of the U.S. economy through equitable enforcement, for both individuals and corporations, of financial laws and regulations. It is the only non-partisan, independent retirement investor advocacy organization in the United States.
SOURCE The Derivative Project