July 16, 2014 / 10:32 PM / 5 years ago

U.S. SEC will vote July 23 on reforms for money market funds

WASHINGTON, July 16 (Reuters) - The U.S. Securities and Exchange Commission announced late Wednesday it will meet July 23 to vote on final rules aimed at reducing investor risk in money market mutual funds.

The SEC did not disclose details on how the rule will look. Reuters previously reported the agency is leaning toward adopting two measures that will require prime funds to switch from a stable $1 per share net asset value to a floating NAV, and also permit fund boards to impose gates or fees on redemptions.

The SEC also said it will repropose a set of money fund rules that reference credit ratings. Under the 2010 Dodd-Frank Wall Street reform law, all financial regulators must strip out references in their rules to credit ratings, in an effort to encourage investors not to rely on them too heavily as a benchmark for credit quality. (Reporting by Sarah Lynch; Editing by Eric Beech)

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