BlackRock, Fidelity Back SEC’s Money-Fund Solution
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BlackRock Inc., Fidelity Investments and Vanguard Group Inc., three of the five largest money-market fund providers, expressed support for the new rules adopted today by the U.S. Securities and Exchange Commission to end years of debate on how to make the $2.6 trillion industry safer.
The changes, to be put into effect in two years, will force funds that cater to institutional investors and buy corporate debt to abandon their traditional $1 share price. They will also give fund boards the ability to impose redemption restrictions and fees during times of crisis.