US Regulators Urge SEC To Propose Fund Changes
|MARCY GORDON, AP Business Writer|
Among the recommendations are requirements for funds to hold capital reserves against losses _ there are none right now _ and limits on how quickly investors can withdraw their money.
Money-market funds hold
The mutual fund industry has lobbied against the changes, saying they would make money funds so unattractive that investors could pull out of them altogether.
A big money-market fund collapsed during the 2008 financial crisis. That led the government to temporarily guarantee assets of all money funds so investors could be assured they would be protected from losses.
Federal Reserve Chairman
Members of the oversight council also include Schapiro and
The oversight council put forward its recommendations for public comment for 60 days. After the group finalizes the recommendations sometime afterward, the
The panel's recommendations include:
_Requiring money funds to hold capital reserves amounting to 1 percent of the fund's assets and requiring that a small percentage of an investor's account be blocked from immediate withdrawal.
_Requiring funds to hold capital reserves of 3 percent and to take other measures such as increasing the diversity of their investments.
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