SEC poised to end $1 a share for some money funds

WASHINGTON — Regulators prepared to vote Wednesday to end a longtime staple of the investment industry — the fixed $1 share price for money-market mutual funds — at least for some money funds used by big investors.

The idea is to minimize the risk of a mass withdrawal from the funds during a financial panic. The Securities and Exchange Commission also is letting money funds block withdrawals during periods of stress or impose fees for withdrawals.

A large money fund “broke the buck” during the 2008 crisis and that stoked a run on some other funds. The government intervened to restore confidence.

The fund industry will have two years to comply. The share prices of the funds involved will be required to “float,” as with other mutual funds.

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