SEC to Vote Soon on Money-Fund Rules

Commission could consider the overhaul of regulations as soon as July.

U.S. Securities and Exchange Commission members may vote as soon as next month on a proposal to overhaul regulation of the $2.5 trillion money-market fund industry, according to a person with knowledge of the matter.

The SEC’s five commissioners are expected to receive a formal proposal next week prepared by staff in the agency’s investment management division, according to the person, who isn’t authorized to speak publicly about internal planning. Commissioners typically spend at least a month reviewing staff proposals before voting on them, the person said.

Industry Opposition

The U.S. Chamber of Commerce has led the fight against the changes sought by Schapiro, blanketing a Washington subway station adjoining SEC headquarters with ads questioning the need for a rules overhaul and releasing a study this week suggesting that even proposing changes could roil markets.

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