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US regulator offers relief to mutual funds facing redemption issues

Order would allow flexibility for the $19tn industry until at least June 30

Mutual funds facing stress from the market turmoil caused by coronavirus will be able to tap their parent asset management companies and other affiliates for funding under relief announced this week by the Securities and Exchange Commission.

The move gives the $19tn mutual-fund industry another tool to deal with large swings in redemptions, including borrowing money from the firm that manages the portfolio, according to an SEC order made public late Monday.

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