SEC's Turf Threatened by Banking Regulators

SEC commissioner says Fed and other agencies use the FSOC to influence rules for money market funds, including the proposal to impose a floating NAV.

U.S. banking regulators are crowding out the Securities and Exchange Commission (SEC) on money-market mutual fund rules and other decisions that affect how capital markets are overseen, a top securities regulator said today.

Other agencies, including the Federal Reserve, have used the Financial Stability Oversight Council (FSOC) to influence rules for money-market funds and potentially tighter regulation of asset managers, SEC Commissioner Michael Piwowar said. The council recommended new rules for the funds in 2012, after the SEC couldn’t agree on a new proposal.

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