A majority of U.S. Securities and Exchange Commission members are seeking a study of money-market regulations after Chairman Mary Schapiro’s bid to advance new rules failed last month, a person familiar with the matter said.
SEC Republican commissioners Daniel Gallagher and Troy Paredes, together with Democrat Luis Aguilar, sent a letter Sept. 17 to Schapiro and SEC Chief Economist Craig Lewis reiterating a call for an analysis of whether certain rules could disrupt money-market funds and short-term credit markets, said the person, who asked not to be identified because the matter isn’t public.
John Nester, an SEC spokesman, declined to comment immediately.
The request for the study comes about three weeks after Schapiro canceled a vote on staff proposals for new money-market rules, saying that the SEC “will not act” because three of the five commissioners didn’t support them. Schapiro, backed by the Federal Reserve, has worked to make money funds more stable in the wake of the collapse of the $62.5 billion Reserve Primary Fund in September 2008, which triggered a wider run on money funds.
Schapiro’s Aug. 22 announcement canceling the vote marked a victory for the mutual-fund industry, which lobbied against new rules.