EFFECTIVE DATE: Comments should be received on or before
ADDRESSES: Comments may be submitted by any of the following methods:
* Use the Commission's Internet comment form (http://www.sec.gov/rules/proposed.shtml); or
* Send an email to email@example.com. Please include File Number S7-07-11 on the subject line; or
* Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.
* Send paper comments to Kevin M. O'Neill, Deputy Secretary,
All submissions should refer to File Number S7-07-11. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/proposed.shtml). Comments also are available for Web site viewing and printing in the
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: We are proposing for public comment amendments to rule 2a-7 [17 CFR 270.2a-7] and Form N-MFP [17 CFR 274.201] under the Investment Company Act. /1/
FOOTNOTE 1 Unless otherwise noted, all references to statutory sections are to the Investment Company Act, and all references to rules under the Investment Company Act, including rule 2a-7, will be to Title 17, Part 270 of the Code of Federal Regulations [17 CFR 270]. END FOOTNOTE
Table of Contents
A. Credit Rating References
B. Exclusion from the Issuer Diversification Requirement
A. Rule 2a-7
1. Eligible Securities
2. Conditional Demand Features
3. Monitoring Minimal Credit Risks
4. Stress Testing
B. Form N-MFP
C. Exclusion from the Issuer Diversification Requirement
III. Compliance Period for the Proposed Rule and Form Amendments
IV. Paperwork Reduction Act Analysis
V. Economic Analysis
VI. Regulatory Flexibility Act Certification Statutory Authority Text of Rule and Form Amendments
A. Credit Rating References
Section 939A of the Dodd-Frank Act requires each Federal agency, including the Commission, to "review any regulation issued by such agency that requires the use of an assessment of the credit-worthiness of a security or money market instrument and any references to or requirements in such regulations regarding credit ratings." /2/ That section further provides that each such agency shall "modify any such regulations identified by the review . . . to remove any reference to or requirement of reliance on credit ratings and to substitute in such regulations such standard of credit-worthiness as each respective agency shall determine as appropriate for such regulations." /3/
FOOTNOTE 2 Public Law 111-203, section 939A(a)(1)-(2). Section 939A of the Dodd-Frank Act applies to all Federal agencies. END FOOTNOTE
FOOTNOTE 3 Public Law 111-203, section 939A(b). Section 939A of the Dodd Frank Act provides that agencies shall seek to establish, to the extent feasible, uniform standards of creditworthiness, taking into account the entities the agencies regulate and the purposes for which those entities would rely on such standards. END FOOTNOTE
As a step toward implementing these mandates, in
FOOTNOTE 4 See References to Credit Ratings in Certain Investment Company Act Rules and Forms, Investment Company Act Release No. 29592 (
Rule 3a-7 under the Investment Company Act also contains a reference to ratings. In
FOOTNOTE 5 See Money Market Fund Reform; Amendments to Form PF, Investment Company Act Release No. 30551 (
FOOTNOTE 6 Id. at text accompanying n.130. END FOOTNOTE
We received several comments on the 2013 Money Market Fund Proposing Release suggesting that we act on credit ratings as part of our broader money market fund reforms. /7/ And today in another release, we have adopted certain amendments to rule 2a-7 and Form N-MFP that we proposed last year. /8/ We also received comments on the 2011 Proposing Release that raised a number of concerns with respect to the proposed amendments and suggested alternative rule text for some provisions. We have determined to re-propose amendments to replace references to credit ratings in rule 2a-7 and to modify provisions in Form N-MFP that reference credit ratings, in consideration of the mandate of Dodd-Frank Act section 939A, the comments on the 2011 Proposing Release, and the broader money market fund reforms we have adopted today. /9/
FOOTNOTE 7 See Comment Letter of
--This is a summary of a
Re-proposed rule; proposed rule.
CFR Part: "17 CFR Parts 270 and 274"
RIN Number: "RIN 3235-AK61"
Citation: "79 FR 47986"
Document Number: "Release No. IC-31184; File No.
Federal Register Page Number: "47986"
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