WASHINGTON -- The Securities and Exchange Commission should restrict tax-exempt money market funds from investing in short-term municipal paper of issuers that do not pledge to provide secondary-market disclosure, SEC Commissioner Richard Roberts said yesterdary.

Speaking at a conference sponsored by the Investment Company Institute, Mr. Roberts said he made the recommendation to the agency's investment management division, which is expected as early as December to propose revisions to the agency's Rule 2a-7 that could set new diversification and quality requirements for managers of tax-exempt money market fund portfolios.

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