A key member of the U.S. Securities and Exchange Commission now says he is open to further reform of the money market fund industry, but it is unclear if his support will be enough to get a divided SEC to agree on new rules.
SEC Commissioner Luis Aguilar, a Democrat on the five-member panel, told Reuters on Friday that he is more inclined to support a proposal now that agency economists have produced a study on the effectiveness of prior reforms.
It found that while the 2010 reforms helped bolster the industry, they would not have been enough to prevent a run on the Reserve Primary Fund in 2008 during the financial crisis.
Aguilar said SEC staff were working on an early-stage draft of a new proposal.
"The huge benefit of having the study and the comments we receive on the study is that it will put me, and I suspect my colleagues, in a much better position to allow us to vote on a proposal," Aguilar told Reuters.
"It's important information that was
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