Split U.S. SEC adopts long-awaited money market fund reforms

WASHINGTON, July 23 Wed Jul 23, 2014 12:03pm EDT

WASHINGTON, July 23 (Reuters) - U.S. securities regulators adopted rules on Wednesday designed to curb the risk of investor runs on money market funds, capping the end of a years-long heated debate between regulators and the industry dating to the financial crisis.

The U.S. Securities and Exchange Commission approved the measure in a 3-2 vote, with Republican SEC Commissioner Michael Piwowar dissenting and Democrat Kara Stein dissenting.

The SEC's rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption "gates" and fees in times of market stress. (Reporting by Sarah N. Lynch; Editing by Bill Trott)

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