The SEC last year proposed a requirement that U.S. funds step up planning to ensure liquidity. It has been granted regulatory clearance to allow its funds to lend money to one another . The approval has cleared the way for BlackRock ’s mutual funds and money market funds to borrow up to a third of their assets in total , or up to 10 % of them without posting collateral , via the asset manager 's “ InterFund ##s . ” Other asset managers , including Vanguard and Fidelity , already have approval to engage in similar lending activities designed to assist managers to comply with mutual fund laws , requiring them to honour redemption ##s within seven days .
It has been granted regulatory clearance to allow its funds to lend money to one another . The approval has cleared the way for BlackRock ’s mutual funds and money market funds to borrow up to a third of their assets in total , or up to 10 % of them without posting collateral , via the asset manager 's “ InterFund ##s . ” Other asset managers , including Vanguard and Fidelity , already have approval to engage in similar lending activities designed to assist managers to comply with mutual fund laws , requiring them to honour redemption ##s within seven days .