From: Bruce Bent,
As the creator of The World's First Money Fund "The Reserve Fund" I applaud their inclusion as a "qualified security".
In response to your limitations:
1. 2a-7 funds only. Agree.
2. Full faith and credit of the U.S. Treasury only. Disagree.
Please clarify; if a fund has assets of $10 million will they be limited to $1 million of 15c3-3 balances in the aggregate or, $1 million from each of a theoretically infinite number of firms (obviously growing as the asset of the fund increases).
3. One day redemption is acceptable but should be same day for redemption prior to 2:00 p.m. It is rare that any Reserve Fund has less than a 20% overnight position so sales would not be necessary even for same day redemption.
. Fund assets of 10 times the assets invested is excessive. 5 times should not be a problem in a triple "A" fund.
Bruce Bent, Chairman