Two groups representing mutual fund independent directors and trustees are joining together to voice their concerns about the changes to money market funds currently being considered by the Securities and Exchange Commission.

Specifically, the Mutual Fund Directors Forum and the Independent Directors Council said that the SEC’s proposal requiring the net asset value of money markets to float instead of retaining a stable $1 net asset value, “would render these funds substantially less attractive to investors and will likely result in investors moving their cash to less-regulated and/or less-transparent products” such as banks.

They added that the flow of assets to banks “would greatly diminish the benefits now provided to investors and the capital markets by money market funds while at the same time increasing the systemic risk posed by these alternative products.”