SEC’s Aguilar Open to Changes in Money Fund Regs

Commissioner who blocked the agency’s initial overhaul now says process is on right track.

A U.S. Securities and Exchange Commission member who blocked the agency’s initial proposal to overhaul regulation of money-market mutual funds now says the process is on the right track.

Commissioner Luis Aguilar, a Democrat, said in an interview last week that a study issued by SEC staff has allayed his concerns that money-fund rules adopted in 2010 hadn’t been sufficiently studied. He said he’ll reconsider all the ideas presented before, including abandoning the industry’s traditional $1 share price.

‘Important Option’

Republican Commissioner Daniel M. Gallagher said in September he might support a floating share value under certain conditions, calling it “an important option to keep on the table and to subject to further study and consideration.” He and Aguilar, along with Republican Commissioner Troy A. Paredes, derailed Schapiro’s overhaul proposals earlier in the year.

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