“Regulators are preparing to take a crucial step toward overhauling some parts of the widely used money market fund industry.

The five members of the Securities and Exchange Commission are scheduled to vote Wednesday morning on a proposal that could eventually do away with the stable dollar-a-share value that has long defined money market funds, according to people briefed on the proposal.

The proposal suggests that it may be necessary to eliminate the fixed share value only on money funds used by big institutional investors, not those used by small investors, and only on so-called prime money funds that invest in corporate debt, not on money funds that invest in government and municipal debt. The affected funds are the ones that were hit the hardest during the financial crisis in 2008.

The long document to be voted on Wednesday is only a proposal, and if it is passed it will face months of public comment before a final vote.”

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