Following the 2008–09 financial crisis, the SEC implemented significant reforms to Rule 2a-7 governing money market funds, including floating net asset values and liquidity restrictions for institutional prime funds. Because GASB guidance for external investment pools had long relied on references to SEC money market fund rules, these regulatory changes created the need for a new accounting framework tailored specifically to public-sector investment pools such as LGIPs.

To learn more about the evolving regulatory landscape for public funds and investment pools, download our latest white paper on GASB 79 guidance.