WASHINGTON — The Financial Stability Oversight Council lacks legal authority to recommend additional money market fund regulations, which a variety of municipal market participants oppose, say industry and business advocacy associations in recently filed comment letters.

The Investment Company Institute and the Center for Capital Markets Competitiveness, part of the U.S. Chamber of Commerce, are among the groups that say proposed recommendations made by FSOC in November are invalid because the Board of Governors of the Federal Reserve System has not clarified the entities over which the council has authority.

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