Investment managers including BlackRock Inc., under pressure to pre-empt action by a new super-committee of regulators, are seeking to end an impasse over money-fund reform, according to three people with knowledge of the matter.
Officials from several firms, as well as representatives from the Investment Company Institute, the industry’s trade group, are scheduled to meet with the Securities and Exchange Commission today to discuss proposals for a potential compromise, said the people, asking not to be identified because the information is private. The industry helped block a plan in August that was backed by SEC Chairman Mary Schapiro.
“We have always sought to be constructive and there is nothing new here,” Bobbie Collins, a spokeswoman for New York-based BlackRock, said in an e-mailed statement. “We were at SEC to renew our commitment to a dialog.”
BlackRock, which managed $140 billion in U.S. money-market mutual funds as of Sept. 30, has made previous proposals to the SEC on money funds, including a plan in August 2011 that mentioned redemption fees, and one in February 2010 suggesting funds be run as “capitalized special purpose entities.”
FSOC was charged by Congress with monitoring the country’s financial stability. Should it supersede the SEC, the primary regulator of mutual funds, that could damage both the industry and the agency.
Aguilar, along with Daniel Gallagher and Troy Paredes, has said he wants to see more study on the impact of the SEC’s 2010 reforms and the potential consequences of Schapiro’s plan. Schapiro responded by appealing to FSOC to act.