Federated To Fight Fund Rules

Investment manager plans legal and regulatory challenges to SEC's forthcoming changes in rules for money funds.

Federated Investors Inc., the third-largest manager of U.S. money-market mutual funds, is planning legal action to block rule changes being contemplated by the U.S. Securities and Exchange Commission that the company said could destroy the $2.7 trillion cash-management industry.

Federated will contest the proposed rule change by both regulatory and legal means, Christopher Donahue, chief executive officer of Pittsburgh-based Federated, said Friday in a conference call with analysts.

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