Reuters writes "Fidelity backs money funds redemption fee during market stress". The story says, "Fidelity Investments, the largest provider of U.S. money market funds, said on Tuesday it would support imposing a 1 percent redemption fee on large institutional money funds during times of extreme market stress. The $2.5 trillion money fund industry has been battling U.S. regulators over reform proposals that Boston-based Fidelity and other providers say could wreck the industry. But in recent weeks, Fidelity has acknowledged that institutional prime money market funds are vulnerable to large, abrupt redemptions in times of financial turmoil. In a speech planned for Tuesday afternoon, Nancy Prior, Fidelity's president of money market funds, put a finer point on Fidelity's views on what it sees as impending regulation." The piece adds, "Prior conceded that the industry appeared headed down the path of more regulation."
