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SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 230, 239, 270, and 274
[Release Nos. 33-7320; IC-22135; S7-34-93]
RIN 3235-AE17
Revisions to Rules Regulating Money Market Funds
AGENCY: Securities and Exchange Commission
ACTION: Final Rule; suspension of compliance date.
SUMMARY: The Commission is suspending the compliance date set
forth in Section V.A of 61 FR 13956, which contains final
amendments to rules and forms that govern money market funds.
EFFECTIVE DATES: The effective date for the rule and form
amendments set forth in 61 FR 13956 remains June 3, 1996.
Effective (insert date of Federal Register Publication), the
compliance date with respect to certain of the amendments
adopted in 61 FR 13956 is suspended. The Commission will
publish in the Federal Register a document notifying the
public of a new compliance date.
FOR FURTHER INFORMATION CONTACT: Marjorie S. Riegel, Senior
Counsel, Office of Chief Counsel (202) 942-0727, Division of
Investment Management, Securities and Exchange Commission, 450
Fifth Street, N.W., Washington, D.C. 20549.
SUPPLEMENTARY INFORMATION: The Commission is suspending the
compliance date in connection with amendments to rules 2a-7,
2a41-1, 12d-3 and 31a-1 [17 CFR 270.2a-7, 270.2a41-1, 270.12d-
3 and 270.31a-1] under the Investment Company Act of 1940 [15 ==========================================START OF PAGE 2======
U.S.C. 80a-1, et seq.] (the "March Amendments").-[1]-
Section V.A of the release adopting the March Amendments (the
"March Release") provided that money market funds would be
required to comply with certain of the March Amendments by
October 3, 1996.-[2]- The Commission anticipates that it
will be proposing technical amendments ("Technical
Amendments") to certain of the March Amendments, which are not
expected to be adopted before October 3, 1996. Therefore, the
Commission is suspending the October 3, 1996 compliance date,
and will establish a new compliance date for the March
Amendments subject to Section V.A.-[3]- This new
compliance date will be published in the Federal Register in
connection with the adoption of the Technical
Amendments.-[4]- The compliance date with respect to
certain of the March Amendments adopted in 61 FR 13956 is
suspended effective upon publication of this release in the
-[1]- See Investment Company Act Rel. No. 21837 (Mar.
21, 1996) [61 FR 13956 (Mar. 28, 1996)].
-[2]- Id.
-[3]- Money market funds may comply with any of the
amendments or rules adopted in the March Release prior to the
new compliance date. See Section V.A. of the March Release.
-[4]- Section V.B of the March Release
"grandfathered" certain securities by providing that money
market funds could continue to purchase such securities issued
on or before June 3, 1996 (the "Grandfathering Date"). The
Commission intends to publish in the Federal Register a new
Grandfathering Date for securities of the type described in
Section V.B of the March Release. Such securities issued
prior to the new Grandfathering Date may continue to be
purchased and held by money market funds relying on the rule.
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Federal Register because such suspension "grants or recognizes
an exemption or relieves a restriction."-[5]-
The Commission notes that Section V.C of the March
Release set forth compliance dates for certain disclosure,
advertising and reporting requirements for money market funds.
These requirements will not be affected by the Technical
Amendments. The Commission is not suspending the compliance
dates for these requirements, and all money market funds are
required to comply with these requirements by the compliance
dates set forth in the March Release.
By the Commission
Jonathan G. Katz
Secretary
August 13, 1996
-[5]- 5 U.S.C. 553(d)(1).