ABA Supports OCC Guidance for Short-Term Investment Funds

In a letter to the OCC yesterday, the American Bankers Association offered support for guidance issued by the agency in March aimed at providing additional flexibility to the rules governing short-term investment funds—bank-managed funds for fiduciary clients that are similar to money market mutual funds. Specifically, the OCC extended the weighted-average maturity limits for assets invested in these funds to account for market illiquidity and disruptions due to the COVID-19 pandemic.

In the letter, ABA encouraged the OCC to extend the relief if market indicators show continued or expected disruptions. ABA also urged the agency to announce by June 30 whether the relief provided will be extended into later in the year.