[Federal Register Volume 61, Number 161 (Monday, August 19, 1996)]
[Rules and Regulations]
[Page 42786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21056]


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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.

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SUMMARY: The Commission is suspending the compliance date set forth in 
a final rule, which contains amendments to rules and forms that govern 
money market funds.

EFFECTIVE DATES: The effective date for the rule and form amendments 
published on March 28, 1996 (61 FR 13956) remains June 3, 1996. 
Effective August 19, 1996, the compliance date with respect to certain 
of the amendments adopted in that rule 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, NW., 
Washington, DC 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 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 Federal 
Register because such suspension ``grants or recognizes an exemption or 
relieves a restriction.'' 5
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    \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.
    \5\ 5 U.S.C. 553(d)(1).
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    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.

    Dated: August 13, 1996.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21056 Filed 8-16-96; 8:45 am]
BILLING CODE 8010-01-P