SEC approves tighter money-market rules

Plan allows money-market funds to temporarily block withdrawals in times of stress

Thursday 24 July 2014 at 12:51

US regulators have approved rules intended to prevent a repeat of an investor exodus out of money-market mutual funds during the financial crisis, addressing one of the biggest unresolved issues from the 2008 meltdown.

The asset management industry, long wary of stricter rules, largely said it could live with the new regulations, which the Securities and Exchange Commission backed in a 3-2 vote.