SEC seeks to wean money market funds off ratings
WASHINGTON (Reuters) - Market regulators on Wednesday proposed to reduce money market mutual funds' reliance on credit-ratings.
The proposal by the Securities and Exchange Commission would remove a regulatory requirement for money market funds to invest in highly-rated securities.
As required under current regulations, however, the funds' board of directors would still need to demonstrate that the underlying securities are of a high quality and pose little credit risk.
(Reporting by Sarah N. Lynch; Editing by Derek Caney)