Investment manager Federated Hermes Inc. sued the SEC, arguing the agency violated federal rulemaking procedures and exceeded its authority when it adopted a Biden-era mandatory liquidity fee on money-market fund shareholders.
Federated Hermes and its subsidiaries operate institutional prime and municipal money-market funds that must comply with the Securities and Exchange Commission’s July 2023 rule requiring funds to charge shareholders a liquidity fee when daily redemptions exceed 5% of fund assets, according to a May 1 complaint in the US District Court for the Western District of Pennsylvania.
The SEC, led by Gary Gensler at the time, said the liquidity ...
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