On October 5, 2010, the staff of the SEC’s Division of Investment Management (the “Staff”) updated its FAQs concerning amendments to Rule 2a-7 under the Investment Company Act of 1940, as amended (the “1940 Act”), and other rules and forms relating to money market funds that were adopted by the SEC earlier this year. Those amendments were discussed in the March 5, 2010 Alert, and the Staff’s previous set of responses to questions regarding the amendments were discussed in the June 1, 2010 Alert. Below is a summary of the additional responses recently added by the Staff to Staff Responses to Questions About Money Market Fund Reform and Staff Responses to Questions about Rule 30b1-7 and Form N-MFP. (Capitalized terms not otherwise defined have the meaning given to them in Rule 2a-7)
Website Posting Requirements. The Staff provided additional guidance regarding the website posting requirement in Rule 2a-7(c)(12).
Form N-MFP. The Staff provided further guidance on responding to questions about a money market fund’s holdings in repurchase agreements under Item 32 of Form N-MFP. The Staff also provided new responses clarifying that a money market fund need not respond to certain items of Form N-MFP pertaining to designated NRSROs; these responses are consistent with the Staff’s position (discussed in the August 24, 2010 Alert) that pending its review of the use of NRSRO ratings in Rule 2a-7 conducted pursuant to Section 939A of the Dodd-Frank Wall Street Reform Act, a money market fund’s board need not designate NRSROs as otherwise required under amended Rule 2a-7.
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