PALM DESERT, Calif. - Andrew Donohue, director of the Securities and Exchange Commission's Division of Investment Management, said Monday that he doesn't think the SEC will push for changes to rule 12b-1 govering mutual fund fees this year.

"We are still committed to its reform, but I think it would be wise to defer consideration of 12b-1 reforms for this year," Donohue said at the Investment Company Institute's Mutual Fund and Investment Management Conference at the Desert Springs Marriott Resort here.

"In 1980, the industry was in a much different state than it was in 2007," he said, noting that the industry was experiencing a high level of redemptions.In 2007, reforms were a much higher priority, as mutual funds were approaching $10 trillion in assets. Now that performance is down and redemptions are back up, priorities have changed, he said.

Donohue said the SEC will be placing a high focus on its review of Rule 2a-7 regarding money market mutual funds and will take into consideration the report submitted last week by the ICI's Money Fund Working Group.

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