Friday, May 25, 2012

Funds Open to a Deal With SEC


Major firms are willing to consider a compromise on a key issue delaying a new regulatory plan for the $2.6 trillion money-market mutual-fund industry, the WSJ reports.  The firms said in a May 8 meeting in Washington that they would consider supporting a watered-down version of a plan floated by the Securities and Exchange Commission to limit how quickly investors can withdraw their money, people familiar with the matter told the Journal.

The SEC, which called the meeting, was receptive to the idea. If the two sides can come together, it would represent a major turning point in SEC Chairman Mary Schapiro's long-running campaign to beef up regulation of money funds.  Officials from fund giants BlackRock, Vanguard Group Inc., J.P. Morgan Chase, and Invesco attended the meeting. Another meeting is scheduled in June. The talks still could fall apart….

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