WASHINGTON -- The Securities and Exchange Commission is expected to vote today to tighten its standards for the quality and diversity of debt that tax-exempt money market funds can hold in their portfolios.

The agency voted in February 1991 to put a 5% cap on the amount of less than top-grade paper that funds that invest in taxable instruments can hold. The agency also said a taxable fund can invest no more than 5% of its assets in securities of any one issuer and no more than 10% in securities backed by any one bank.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.