WASHINGTON -- The Securities and Exchange Commission announced yesterday that it is excusing tax-exempt money market funds from a new standard that requires a fund's board of directors to approve the purchase of any bond that is unrated or rated by only one nationally recognized rating agency.

The new requirement was part of a set of amendments to the agency's money market Rule 2a-7 that the commission approved last year. The amendments set tough new diversification and quality requirements for managers of money market fund portfolios. The ratification standard is one of the few rules in the package that applied to tax-exempt funds.

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