According to recent press reports, the Securities and Exchange Commission (SEC) is considering releasing a controversial proposal to impose additional capital and liquidity regulations on the $2.7 trillion money market fund industry (MMMFs) and to replace the fixed $1 net-asset value ("par value") rule now used by all MMMFs to redeem customer funds with a mark-to-market (NAV) requirement. 

A regulatory change in the mutual fund systemcould encourage price competition.

Why would it be that in the mutual fund industry, the principal players--the investment advisers of mutual funds--refuse to compete on price with one another?

Does price competition exist in the mutual fund industry? If so, is it too weak to prevent anticompetitive pricing by investment advisors to retail investors?

John Bogle is one of the pioneers of the mutual fund industry in the United States, a founder of the Vanguard Group, and an author of several books and innumerable articles about finance and investing. He is also one of the most outspoken critics of the mutual fund industry today....

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Recently, two large players in the mutual fund business, Citigroup and Merrill Lynch, sold off control of their fund businesses to smaller, more specialized organizations. In addition, many smaller investment advisory organizations have been leaving the field,...

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Economists sometimes ask basic questions about regulation that reflect a broader perspective on issues than is usually taken by those who wrestle with regulatory issues day to day. Paula Tkac, an economist at the Federal Reserve Bank...