48376 Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Rules and Regulations 

1 15 U.S.C. 80a. 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]. 

2See generally Valuation of Debt Instruments and 

Computation of Current Price Per Share by Certain 

Open-End Investment Companies (Money Market 

Funds), Investment Company Act Release No. 

13380 (July 11, 1983) [48 FR 32555 (July 18, 1983)]. 

Most money market funds seek to maintain a stable 

net asset value per share of $1.00, but a few seek 

to maintain a stable net asset value per share of a 

different amount, e.g., $10.00. For convenience, 

throughout this release, the discussion will simply 

refer to the stable net asset value of $1.00 per share. 3Our staff estimates that approximately 79 

percent of money market funds participated in the 

Guarantee Program, and that the money market 

funds that did not participate in the program were 

mostly funds that invest predominately in U.S. 

Treasury and U.S. Government securities. 4See Press Release, U.S. Department of the 

Treasury, Treasury Announces Guaranty Program 

for Money Market Funds (Sept. 19, 2008), available 

at http://www.treas.gov/press/releases/hp1147.htm. 5See Press Release, U.S. Department of the 

Treasury, Treasury Announces Extension of 

Temporary Guarantee Program for Money Market 

Funds (Nov. 24, 2008), available at http:// 

www.treas.gov/press/releases/hp1290.htm; Press 

Release, U.S. Department of the Treasury, Treasury 

Announces Extension of Temporary Guarantee 

Program for Money Market Funds (Mar. 31, 2009), 

available at http://www.treas.gov/press/releases/ 

tg76.htm. 6See section 5(b) of the Guarantee Agreement that 

money market funds participating in the Treasury’s 

Guarantee Program were required to sign 

(‘‘Guarantee Agreement’’), available at http:// 

www.treas.gov/offices/domestic-finance/keyinitiatives/money-market-docs/GuaranteeAgreement_form.pdf (requiring a fund to submit 

reports when their market-based net asset value is 

less than $.9975). 

rule concerning Executive Order 12866 

and the Regulatory Flexibility Act, 

Executive Orders 12372, and the 

Paperwork Reduction Act. 

Further, for this action, the Office of 

Management and Budget has waived its 

review under Executive Order 12866. 

List of Subjects in 9 CFR Part 77 

Animal diseases, Bison, Cattle, 

Reporting and recordkeeping 

requirements, Transportation, 

Tuberculosis. 

PART 77—TUBERCULOSIS 

■ Accordingly, we are adopting as a 

final rule, without change, the interim 

rule that amended 9 CFR part 77 and 

that was published at 74 FR 12055– 

12058 on March 23, 2009. 

Done in Washington, DC, this 18th day of 

September 2009. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. E9–22960 Filed 9–22–09; 8:45 am] 

BILLING CODE 3410–34–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 270 

[Release No. IC–28903; File No. S7–20–09] 

RIN 3235–AK33 

Disclosure of Certain Money Market 

Fund Portfolio Holdings 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Interim final temporary rule; 

request for comment. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’) 

is adopting an interim final temporary 

rule under the Investment Company Act 

of 1940 to require a money market fund 

to report its portfolio holdings and 

valuation information to the 

Commission under certain 

circumstances. The new reporting 

requirement is designed to provide 

information substantially similar to that 

submitted by certain money market 

funds under the Temporary Guarantee 

Program for Money Market Funds 

established by the Department of the 

Treasury (‘‘Treasury Department’’), 

which will expire on September 18, 

2009. 

DATES: Effective Date: September 18, 

2009 through September 17, 2010. 

Comment Date: Comments should be 

received on or before October 26, 2009. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/final.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number S7–20–09 on the subject line; 

or 

• Use the Federal eRulemaking Portal 

(http://www.regulations.gov). Follow the 

instructions for submitting comments. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number S7–20–09. This file number 

should be included on the subject line 

if e-mail is used. To help us 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/final.shtml). 

Comments are also available for public 

inspection and copying in the 

Commission’s Public Reference Room, 

100 F Street, NE., Washington, DC 

20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

All comments received will be posted 

without change; we do not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about the rule, 

please contact one of the following 

members of the staff in the Division of 

Investment Management, at the 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–8549: Adam B. Glazer, Senior 

Counsel, or Hunter Jones, Assistant 

Director at (202) 551–6792; for technical 

questions related to the submission of 

portfolio information to the 

Commission, in the Office of 

Information Technology, Rick Heroux, 

at (202) 551–8168. 

SUPPLEMENTARY INFORMATION: The 

Commission is adopting new rule 30b1– 

6T under the Investment Company Act 

of 1940 (‘‘Investment Company Act’’ or 

‘‘Act’’) 1 as an interim final temporary 

rule. We are soliciting comments on all 

aspects of the interim final temporary 

rule. We will carefully consider the 

comments that we receive and intend to 

respond to them in a subsequent release. 

I. Background 

Money market funds are open-end 

management investment companies that 

invest in short-term obligations and 

have a principal investment objective of 

maintaining a net asset value of $1.00 

per share.2 Since October 2008, most 

money market funds have participated 

in the Treasury Department’s 

Temporary Guarantee Program for 

Money Market Funds (‘‘Guarantee 

Program’’), which has guaranteed the 

$1.00 share value of accounts held by 

investors as of September 19, 2008 in 

participating money market funds.3 The 

Guarantee Program was established to 

help stabilize money market funds 

following a period of substantial 

redemptions that threatened the ability 

of some money market funds to 

maintain the $1.00 share value.4 The 

program will expire on September 18, 

2009.5

Money market funds participating in 

the Guarantee Program have been 

required, in certain circumstances, to 

submit their portfolio schedules and 

related information each week to the 

Treasury Department and the 

Commission.6 The Commission has 

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Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Rules and Regulations 48377 

7Money Market Fund Reform, Investment 

Company Act Release No. 28807 (June 30, 2009) [74 

FR 32688 (July 8, 2009)] (‘‘2009 Proposing 

Release’’). The 2009 Proposing Release includes an 

extensive discussion of the market developments 

leading to the Commission’s proposals. See id. at 

Section I. 8 Id. (proposing new rule 30b1–6 and Form 

N–MFP). 9 Id. at Section II.F.2. 

10 Id. at text preceding n.81. 

11See, e.g., American Institute of Certified Public 

Accountants Comment Letter (Sept. 8, 2009); 

Bankers Trust Company, N.A. Comment Letter 

(Aug. 28, 2009); BlackRock Inc. Comment Letter 

(Sept. 4, 2009). Five commenters who addressed the 

reporting of portfolio holdings to the Commission 

did not generally support or oppose the proposal. 

One commenter expressed strong support for the 

Commission’s efforts and offered specific comments 

on the proposed reporting of portfolio securities to 

the Commission. See Data Communique ́ Comment 

Letter (Sept. 8, 2009). Two commenters opposed the 

reporting of portfolio holdings to the Commission. 

See The Dreyfus Corporation Comment Letter (Sept. 

8, 2009); Vera B. Lichtenberger Comment Letter 

(Sept. 3, 2009). See also American Benefits Council 

Comment Letter (Sept. 8, 2009) (expressing general 

support for the Commission’s proposals); AARP 

Comment Letter (Sept. 8, 2009) (expressing general 

support for Commission’s efforts to step up 

oversight of money market funds). 

12See, e.g., Federated Investors, Inc. Comment 

Letter (Sept. 8, 2009); Fidelity Investments 

Comment Letter (Aug. 24, 2009); Fifth Third Asset 

Management, Inc. Comment Letter (Sept. 8, 2009); 

Investment Company Institute Comment Letter 

(Sept. 8, 2009). 

13See, e.g., Investment Company Institute 

Comment Letter (Sept. 8, 2009); T. Rowe Price 

Associates, Inc. Comment Letter (Sept. 8, 2009); The 

Vanguard Group, Inc. Comment Letter (Aug. 19, 

2009). 

14See, e.g., BlackRock Inc. Comment Letter (Sept. 

4, 2009); Federated Investors, Inc. Comment Letter 

(Sept. 8, 2009); T. Rowe Price Associates, Inc. 

Comment Letter (Sept. 8, 2009). 

15See rule 30b1–6T(b)(3). Some items of 

information that money market funds report under 

the Guarantee Program are not included in rule 

30b1–6T. These items, such as the identity of the 

fund’s subadviser, are items to which we have 

access through other means. 

16Rule 30b1–6T(a). In the Proposing Release, we 

requested comment on whether we should also 

require funds to provide us market-based portfolio 

value information on a nonpublic basis. In addition, 

we asked for comment on whether a certain price 

level of NAV (e.g., $.9975) should trigger such 

disclosure, and how frequently money market funds 

should be required to provide this information (e.g., 

weekly or daily). See 2009 Proposing Release, supra 

note 7, at text accompanying and following n.253. 

17Rule 30b1–6T(a)(1). 

18Rule 30b1–6T(a)(2). 

found these reports very useful in 

monitoring money market funds, and 

we believe that continuing to receive 

this information will further our 

mission to protect investors. When the 

program expires, however, money 

market funds will no longer be required 

to submit such portfolio information, 

and we will not receive current 

information about money market fund 

holdings. 

In June 2009, the Commission 

proposed new rules and rule 

amendments to reform the regulation of 

money market funds.7 The proposal 

included a new rule and a new form 

N–MFP, on which money market funds 

would report to the Commission 

detailed information about their 

portfolio holdings, which we would use 

to monitor the funds.8 We proposed to 

require that all money market funds 

submit more detailed information than 

we currently receive under the 

Guarantee Program, and we proposed 

that the information be filed in a format 

that would permit us to create a 

searchable database of money market 

fund information.9 The proposed 

requirement that money market funds 

report detailed portfolio information to 

the Commission was designed to 

improve our ability to oversee those 

funds.10

We have received more than 125 

comments on the money market fund 

amendments we proposed in June 2009. 

Of the approximately 40 commenters 

who addressed the proposals to require 

the reporting of portfolio holdings to the 

Commission, 33 generally supported 

such reporting.11 Some commenters, 

however, expressed concerns about the 

specific information required,12 the 

timing of the disclosure,13 and our 

intent to make the information publicly 

available.14

We will continue to review these 

comment letters, and any additional 

comments we receive in response to our 

additional request for comment in this 

Release below. These comments will 

help us to determine whether, and if so 

how, to construct a permanent reporting 

regime that best meets our regulatory 

needs in protecting investors, while 

imposing no more regulatory burdens 

than are necessary. In the meantime, 

however, because of the importance of 

the information about money market 

fund portfolios, we are adopting an 

interim final temporary rule, rule 30b1– 

6T, that requires the reporting of basic 

securities portfolio information to the 

Commission in certain limited 

circumstances, as described below. The 

interim final temporary rule is designed 

to maintain our ability, as it currently 

exists under the Guarantee Program, to 

monitor money market funds while we 

consider whether to adopt the 

amendments we proposed in June 2009. 

II. Discussion 

A. Rule 30b1–6T 

Rule 30(b)1–6T requires money 

market funds to provide the 

Commission weekly portfolio and 

valuation information substantially 

similar to what money market funds 

participating in the Guarantee Program 

provided to us and the Treasury 

Department under the program, if their 

market-based net asset value per share 

was below $.9975. Each money market 

fund that is required to report must 

provide a portfolio schedule as of the 

last business day of each week that 

includes, with respect to the fund: (A) 

The name of the money market fund; (B) 

the fund’s SEC file number; (C) the net 

asset value per share used to effect 

shareholder transactions; (D) the most 

recent market-based net asset value 

(including the value of any capital 

support agreement); (E) the most recent 

market-based net asset value (excluding 

the value of any capital support 

agreement); (F) the date as of which the 

most recent market-based net asset 

value was calculated; (G) the total assets 

of the fund; (H) the total net assets of the 

fund; and (I) the number of shares 

outstanding. The portfolio schedule also 

must include, with respect to each 

security held: (A) The name of the 

security; (B) CUSIP number (if any); (C) 

principal amount; (D) maturity date; (E) 

final maturity date, if different from the 

maturity date as determined under rule 

2a-7; (F) categorization of the security’s 

status as a ‘‘First Tier Security,’’ 

‘‘Second Tier Security’’ or a security 

that is no longer an ‘‘Eligible Security’’ 

under rule 2a–7; (G) the most recent 

market-based price (including the value 

of any capital support agreement), or 

appropriate substitute for such price, in 

which case the portfolio schedule or an 

exhibit to it must describe with 

reasonable specificity the appropriate 

substitute; (H) the most recent marketbased price (excluding the value of any 

capital support agreement), or 

appropriate substitute for such price, in 

which case the portfolio schedule or an 

exhibit to it must describe with 

reasonable specificity the appropriate 

substitute; (I) the amortized cost value 

of the security; and (J) in the case of a 

tax-exempt security, whether there is a 

demand feature.15

As was the case under the Guarantee 

Program, only a money market fund 

with market-based net asset value per 

share (‘‘market-based NAV’’) below 

$.9975 must report information under 

the rule.16 Such a fund must notify the 

Commission by electronic mail and 

provide a portfolio schedule to the 

Commission promptly, but in no event 

later than the next business day.17

Subsequently, the fund must report its 

portfolio schedule as of the last business 

day of the week, and submit it no later 

than the second day of the following 

week, until the fund’s market-based 

NAV at the end of the week is $.9975 

or greater.18 This information will 

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48378 Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Rules and Regulations 

19Rule 30b1–6T(b)(3). 

20Section 1(q) of the Guarantee Agreement, supra 

note 6. 

21The reports may be sent through secure 

encrypted electronic mail by registering for an 

account at the following URL: https:// 

web1.zixmail.net/s/login?b=sec. The Guarantee 

Program similarly allows for submission of 

encrypted information by electronic mail. 

22The address we have established is 

mmfweeklyholdings@sec.gov. A money market fund 

providing information under rule 30b1–6T should 

not submit a confidential treatment request to the 

Commission, but must label its submission to the 

Commission as non-public. 

23 In the 2009 Proposing Release, we requested 

comment on whether portfolio holdings 

information filed with the Commission on proposed 

Form N–MFP should be submitted in nonpublic 

reports to the Commission, and we continue to 

consider comments on that rulemaking. See 2009 

Proposing Release, supra note 7, at paragraph 

following n.251 and at text accompanying and 

following n.253. 

24See rule 30b1–6T(c). The Freedom of 

Information Act (‘‘FOIA’’) provides at least two 

pertinent exemptions under which the Commission 

has authority to withhold certain information. FOIA 

Exemption 4 provides an exemption for ‘‘trade 

secrets and commercial or financial information 

obtained from a person and privileged or 

confidential.’’ 5 U.S.C. 552(b)(4). FOIA Exemption 

8 provides an exemption for matters that are 

‘‘contained in or related to examination, operating, 

or condition reports prepared by, on behalf of, or 

for the use of an agency responsible for the 

regulation or supervision of financial institutions.’’ 

5 U.S.C. 552(b)(8). 25Rule 30b1–6T(d). 

26See section 30(c)(2)(A) of the Investment 

Company Act (requiring Commission to consider 

and seek public comment on feasible alternatives to 

the required filing of information that minimize 

reporting burdens on funds). 

27See section 30(c)(2)(B) of the Investment 

Company Act (requiring Commission to consider 

and seek public comment on the utility of 

information, documents and reports to the 

Commission in relation to the associated costs). 

28 5 U.S.C. 553(b). 

29 Id. 

30 5 U.S.C. 553(d). 

31 5 U.S.C. 553(d)(3). 

enable us to identify funds that present 

a greater risk that they will be unable to 

maintain their primary investment 

objectives. 

The portfolio information would be 

provided to the Commission as an 

attachment in Microsoft Excel format.19

Excel format is the format that money 

market funds have been required to use 

for submissions under the Guarantee 

Program.20

B. Nonpublic Nature of Information 

Reported 

The information provided to the 

Commission may be sent by secure 

encrypted electronic mail 21 to the 

address we have established for this 

purpose.22 In light of the nature of the 

information that will be provided to the 

Commission under rule 30b1–6T and 

the purposes for which the Commission 

is requiring the information, we have 

determined to maintain the 

confidentiality of the information 

submitted to the Commission,23 and the 

rule states that the information will be 

nonpublic to the extent permitted by 

law.24

C. Effective Date and Expiration of the 

Rule 

Rule 30b1–6T will be effective as of 

September 18, 2009, so that the 

Commission will continue to receive the 

information that it has received in the 

past year under the Guarantee Program. 

The rule, by its terms, will expire on 

September 17, 2010.25 Setting a 

termination date of one year for the rule 

will necessitate further Commission 

action no later than the end of that 

period if the Commission determines to 

continue the same, or similar, 

requirements contained in the 

temporary rule. 

III. Request for Comment 

The Commission requests comment 

on interim final temporary rule 30b1– 

6T. We will carefully consider the 

comments that we receive and intend to 

respond to them in a subsequent release. 

We may revise the rule in a number of 

ways, including (i) making the rule 

permanent, (ii) revising the 

circumstances that trigger a reporting 

obligation, (iii) revising the information 

that a fund must report under the rule, 

and (iv) revising the method of reporting 

the information to the Commission. 

We seek comment generally on all 

aspects of the temporary rule, including 

the following: 

Expiration. Rule 30b1–6T is a 

temporary rule and is set to expire on 

September 17, 2010. Should we remove 

the expiration provision of the rule and 

make the rule permanent? Should we 

extend the expiration date of the rule? 

If so, for how long? Should we allow the 

rule to expire? 

Timing. The rule requires the 

submission of portfolio and valuation 

information to the Commission on a 

weekly basis. Should funds be required 

to provide the information more 

frequently (e.g., daily) or less frequently 

(e.g., monthly or biweekly)? The 

information must be provided within 

two business days after the end of the 

week, and we understand that funds 

that have submitted this information 

under the Guarantee Program have not 

encountered difficulties meeting the 

two-day deadline. Has the deadline 

imposed hardships in the past? Do 

money market funds anticipate future 

difficulties in meeting this deadline if 

they become subject to the reporting 

requirement? Should the rule allow a 

longer delay in submitting the 

information (e.g., three days or five 

days)? Should it require a shorter delay 

in submitting the information (e.g., one 

day)? 

Reporting Threshold. The rule 

requires a money market fund to submit 

portfolio and valuation information to 

the Commission if its market-based 

NAV declines below $.9975. Is this an 

appropriate threshold to trigger 

reporting? Should the threshold be 

lower (e.g., $.9970) or higher (e.g., 

$.9980 or $.9985)? 

Reporting Items. Should we omit any 

of the disclosure requirements of rule 

30b1–6T? If so, what information should 

be omitted from the proposed 

requirement, and why? Should we 

require additional or alternative 

information, such as the money market 

fund’s client concentration levels, the 

percentage of the issue held by the fund, 

or last trade price and trade volume for 

each security? 

Regulatory Alternatives. We request 

comment on feasible alternatives that 

would minimize the reporting burdens 

on money market funds.26 We also 

request comment on the utility of the 

reports to the Commission in relation to 

the costs to money market funds of 

providing the reports.27 In addition, we 

request comment on whether funds 

should be permitted to submit a hard 

copy of their portfolio schedule 

information to satisfy the initial or 

weekly reporting requirement. 

IV. Other Matters 

The Administrative Procedure Act 

(‘‘APA’’) generally requires an agency to 

publish notice of a proposed rulemaking 

in the Federal Register.28 This 

requirement does not apply, however, if 

the agency ‘‘for good cause finds * * * 

that notice and public procedure 

thereon are impracticable, unnecessary, 

or contrary to the public interest.’’ 29

The APA also generally requires that an 

agency publish an adopted rule in the 

Federal Register 30 days before it 

becomes effective.30 This requirement 

also does not apply, however, if the 

agency finds good cause for making the 

rule effective sooner.31

For the reasons discussed in this 

release, we believe that we have good 

cause to act immediately to adopt this 

rule on an interim final temporary basis. 

We believe it is important for the 

Commission to continue to receive 

information from money market funds 

in certain circumstances so that we can 

monitor these funds. Adoption of the 

rule with an immediate effectiveness 

will minimize any disruption to the 

normal reporting schedule of money 

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Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Rules and Regulations 48379 

32 44 U.S.C. 3501–3521. 

33We understand that the required information is 

currently maintained by money market funds 

pursuant to other regulatory requirements or in the 

ordinary course of business. Accordingly, for the 

purposes of our analysis, we do not ascribe any 

time to gathering the required information. 

34Because one report is required each week, a 

fund would submit 52 reports in one year. The first 

report would require 6 hours and subsequent 

reports would require 4 hours each. The difference 

between the hours is due to the fact that funds 

generally would not incur the additional start-up 

time applicable to the first report. The annual 

burden of the reporting requirement would be 210 

hours (1 report × 6 hours = 6 hours, 51 reports × 

4 hours = 204 hours, and 6 hours + 204 hours = 

210 hours). 

35This estimate is based on the following 

calculation: 2100 hours × $281/hour (senior 

database administrator) = $590,100. This hourly 

wage estimate is from the Securities Industry and 

Financial Markets Association Report on 

Management & Professional Salaries Data (Sept. 

2008), modified to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses, 

firm size, employee benefits and overhead. 

36See 2009 Proposing Release, supra note 7, at 

Section V. 

37See, e.g., Committee of Annuity Insurers 

Comment Letter (Sept. 8, 2009); Data Communique ́

Comment Letter (Sept. 8, 2009); The Dreyfus 

Corporation Comment Letter (Sept. 8, 2009); 

Fidelity Investments Comment Letter (Aug. 24, 

2009). 

market funds that meet the reporting 

threshold. Avoiding such disruption 

should obviate the need for those funds 

to stop and restart their reporting 

procedures, and will allow us 

uninterrupted access to the information 

in the reports. This information will 

permit us to identify funds that present 

a greater risk that they will be unable to 

maintain their primary investment 

objectives. 

The temporary rule takes effect on 

September 18, 2009 and will expire on 

September 17, 2010. For the reasons 

discussed above, we have acted on an 

interim final basis. We emphasize that 

we are requesting comment on the 

temporary rule. We will carefully 

consider the comments we receive, and 

we intend to respond to them in a 

subsequent release. 

We find that there is good cause to 

have the temporary rule take effect on 

September 18, 2009, and that notice and 

public procedure in advance of 

effectiveness of the rule are 

impracticable, unnecessary, and 

contrary to the public interest. 

V. Paperwork Reduction Act Analysis 

Interim final rule 30b1–6T under the 

Investment Company Act contains a 

‘‘collection of information’’ within the 

meaning of the Paperwork Reduction 

Act of 1995 (‘‘PRA’’).32 The title for the 

new collection of information is ‘‘Rule 

30b1–6T under the Investment 

Company Act of 1940, Weekly portfolio 

report for certain money market funds.’’ 

We submitted burden estimates to the 

Office of Management and Budget 

(‘‘OMB’’) for review and approval in 

accordance with 44 U.S.C. 3507(j) and 5 

CFR 1320.13. Separately, we submitted 

the burden estimates to OMB for review 

and approval in accordance with 44 

U.S.C. 3507(d) and 5 CFR 1320.11. OMB 

has approved the burden estimates 

related to our adoption of rule 30b1–6T 

on an emergency basis. Our new rule is 

designed to improve our ability to 

oversee money market funds with a 

greater risk that they will be unable to 

maintain their primary investment 

objectives. An agency may not conduct 

or sponsor, and a person is not required 

to respond to, a collection of 

information unless it displays a 

currently valid control number. 

Rule 30b1–6T requires a money 

market fund whose market-based net 

asset value is less than $.9975 to 

electronically (i) notify the Commission 

promptly and submit a portfolio 

schedule within one business day, and 

(ii) submit a portfolio schedule within 

two business days after the end of each 

week until such time as the fund’s 

market-based net asset value equals or 

exceeds $.9975. The rule is intended to 

facilitate our oversight of money market 

funds. The respondents to rule 30b1–6T 

are investment companies that are 

regulated as money market funds under 

rule 2a–7. Compliance with the rule is 

mandatory for any money market fund 

whose market-based NAV is less than 

$.9975. Responses to the disclosure 

requirements will be kept confidential. 

We estimate, based on past experience 

under the Guarantee Program, that at 

any given time 10 money market funds 

will be required by rule 30b1–6T to 

provide weekly reports disclosing 

certain information regarding the fund’s 

portfolio holdings. We estimate that 

money market funds would require an 

average of approximately 6 burden 

hours to compile and electronically 

submit the initial required portfolio 

holdings information, and an average of 

approximately 4 burden hours in 

subsequent reports.33 Based on these 

estimates, we estimate the annual 

burden will be 210 hours per money 

market fund that is required to provide 

the information.34 Based on an estimate 

of 10 money market funds submitting 

information under the rule, we estimate 

that, in the aggregate, rule 30b1–6T 

would result in 2100 hours, for all 

money market funds required to submit 

portfolio schedules. 

VI. Cost Benefit Analysis 

The Commission is sensitive to the 

costs and benefits imposed by its rules. 

We have identified certain costs and 

benefits of rule 30b1–6T and request 

comment on all aspects of this cost 

benefit analysis, including identification 

and assessment of any costs and benefits 

not discussed in this analysis. Where 

possible, we request that commenters 

provide empirical data to support any 

positions advanced. 

A. Benefits 

We are adopting rule 30b1–6T to 

enable the Commission staff to continue 

to have effective oversight of money 

market funds. The rule would also 

improve the efficiency and effectiveness 

of the Commission’s oversight by 

providing useful information about 

money market funds that report under 

the rule, and by enabling the staff to 

manage and analyze money market fund 

portfolio information more quickly and 

at a lower cost than is possible without 

electronic submissions of portfolio 

schedules. 

B. Costs 

Rule 30b1–6T will impose some costs 

on funds. For the purposes of the PRA, 

we estimated that the rule will result in 

an increase of 2100 burden hours per 

year. We estimate that these burden 

hours will cost a total of $590,100.35 We 

do not believe that rule 30b1–6T will 

impose other significant costs, 

especially given the nonpublic nature of 

the reports required under the rule. 

In the 2009 Proposing Release, we 

requested comment on the costs and 

benefits of requiring money market 

funds to report certain portfolio 

holdings information to the 

Commission.36 Commenters generally 

supported the proposed reporting 

obligation, but some expressed concerns 

about the costs associated with specific 

disclosure items, the timing and 

frequency of the reports (particularly in 

view of the amount of disclosure 

required), and the public availability of 

the reports.37 We believe that these 

concerns are not applicable to rule 

30b1–6T because the rule’s reporting 

requirement will be triggered only on 

the relatively rare occasion that a fund’s 

net asset value fell below $.9975. In 

addition, the reports themselves will 

require less information and will remain 

nonpublic. 

C. Request for Comment 

We request comment on all aspects of 

this cost-benefit analysis. Commenters 

should address in particular whether 

rule 30b1–6T will generate the 

anticipated benefits or impose any other 

costs on money market funds or other 

market participants. We also request 

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48380 Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Rules and Regulations 

38 15 U.S.C. 80a–2(c). 

39Committee of Annuity Insurers Comment Letter 

(Sept. 8, 2009) (‘‘Some of these Committee members 

believe that preparation of Form N–MFP on a 

monthly basis would place an undue burden on 

sub-advised underlying money market funds. This 

is because a number of the information items 

required by proposed Form N–MFP require 

information that typically is in the possession of the 

sub-adviser that actually manages the portfolio.’’). 

40 5 U.S.C. 603(a). 

41 5 U.S.C. 605(b). 

42Although the requirements of the RFA do not 

apply to rules adopted under the APA’s ‘‘good 

cause’’ exception, see 5 U.S.C. 601(2) (defining 

‘‘rule’’ and notice requirement under the APA), we 

have nevertheless provided this certification. 

43We note that we included a certification under 

the RFA in the 2009 Proposing Release on the 

grounds that none of the money market funds met 

the definition of a small entity under the Act, and 

we encouraged written comment regarding this 

certification. See 2009 Proposing Release, supra 

note 7, at Section VII. No commenters on that 

rulemaking have addressed the Regulatory 

Flexibility Act certification. 

comment as to any costs or benefits 

associated with rule 30b1–6T that we 

may not have considered here, 

including whether the rule will have a 

disproportionate effect on any particular 

types of fund complexes. Commenters 

are specifically invited to share 

quantified costs and benefits. 

VII. Consideration of Promotion of 

Efficiency, Competition, and Capital 

Formation 

Section 2(c) of the Investment 

Company Act requires the Commission, 

when engaging in rulemaking that 

requires it to consider or determine 

whether an action is consistent with the 

public interest, to consider, in addition 

to the protection of investors, whether 

the action will promote efficiency, 

competition, and capital formation.38

We requested comment on whether the 

proposed reporting requirement, if 

adopted, would promote efficiency, 

competition, or capital formation. One 

commenter on the 2009 Proposing 

Release asserted that the extensive 

reporting requirements under proposed 

rule 30b1–6 would have an adverse 

effect on competition for sub-advised 

funds.39 As noted above, however, rule 

30b1–6T requires less disclosure than 

rule 30b1–6, which we are continuing to 

consider. In addition, although rule 

30b1–6T requires more frequent (i.e., 

weekly) disclosure, it applies to far 

fewer funds, because only funds whose 

market-based net asset value is less than 

$.9975 would be required to submit 

reports. Thus, we believe that the 

concerns expressed by the commenter 

are less applicable to rule 30b1–6T. 

Rule 30b1–6T is intended to facilitate 

oversight of money market funds that 

present a greater risk that they will be 

unable to maintain their primary 

investment objectives. As noted above, 

the nonpublic reports are designed to 

improve the efficiency and effectiveness 

of the Commission’s oversight of such 

money market funds, which may also 

provide reassurance to investors, which 

may in turn promote capital formation. 

We do not believe that the rule will 

have any effect on competition. 

VIII. Regulatory Flexibility Act 

Certification 

Section 3(a) of the Regulatory 

Flexibility Act of 1980 (‘‘RFA’’) 40

requires the Commission to undertake 

an initial regulatory flexibility analysis 

of the effect of its rules on small entities 

unless the Commission certifies that the 

rules do not have a significant economic 

impact on a substantial number of small 

entities.41 Pursuant to section 605(b) of 

the RFA, the Commission hereby 

certifies that Investment Company Act 

rule 30b1–6T does not have a significant 

impact on a substantial number of small 

entities.42

Rule 0–10 of the Investment Company 

Act defines a ‘‘small entity’’ for 

purposes of the Act as an investment 

company that, together with other 

investment companies in the same 

group of related investment companies, 

has net assets of $50 million or less as 

of the end of its most recent fiscal year. 

Rule 30b1–6T applies only to money 

market funds, and none of these funds 

meet the definition of a small entity 

under the Act.43

We solicit comment on the 

certification. Commenters are asked to 

describe the nature of any impact on 

small entities and provide any empirical 

data. 

IX. Statutory Authority 

The Commission is adopting new rule 

30b1–6T pursuant to authority set forth 

in Sections 8(b), 30(b), 31(a), and 38(a) 

of the Investment Company Act [15 

U.S.C. 80a–8(b), 80a–29(b), 80a–30(a), 

and 80a–37(a)]. 

List of Subjects in 17 CFR Part 270 

Investment companies, Reporting and 

recordkeeping requirements, Securities. 

Text of Rule 

■ For reasons set out in the preamble, 

Title 17, Chapter II of the Code of 

Federal Regulations is amended as 

follows: 

PART 270—RULES AND 

REGULATIONS, INVESTMENT 

COMPANY ACT OF 1940 

■ 1. The authority citation for Part 270 

continues to read, in part, as follows: 

Authority: 15 U.S.C. 80a–1 et seq., 80a– 

34(d), 80a–37, and 80a–39, unless otherwise 

noted. 

* * * * * 

■ 2. Section 270.30b1–6T is added to 

read as follows: 

§ 270.30b1–6T Weekly portfolio report for 

certain money market funds. 

(a) Notice and portfolio reports. If the 

market-based NAV of a money market 

fund on any business day (‘‘report 

date’’) is less than 99.75 percent of the 

fund’s stable net asset value per share or 

stable price per share pursuant to 

§ 270.2a–7(c)(1) (‘‘stable NAV’’), the 

fund must, by electronic mail sent to the 

electronic address 

mmfweeklyholdings@sec.gov: 

(1) Notify the Commission that its 

NAV is less than 99.75 percent of its 

stable NAV, and provide the 

Commission with a portfolio schedule 

as of the report date, promptly but in no 

event later than the next business day 

after the report date (unless the fund is 

currently submitting reports pursuant to 

this section); and 

(2) Provide the Commission a 

portfolio schedule as of the last business 

day of each week, no later than the 

second business day of the following 

week, until the fund’s market-based 

NAV as of such day is 99.75 percent of 

its stable NAV or greater. 

(b) Definitions. For purposes of this 

section: 

(1) Market-based NAV means a money 

market fund’s net asset value per share 

calculated using available market 

quotations or an appropriate substitute 

approved by the fund’s board of 

directors as specified in the procedures 

that the fund has adopted in accordance 

with § 270.2a–7(c)(7) or, if the fund does 

not value securities using the amortized 

cost method, the fund’s current net asset 

value per share calculated in accordance 

with § 270.2a–4 (without regard to 

§ 270.2a–7). 

(2) Money market fund means an 

open-end management investment 

company or series thereof that is 

registered under the Investment 

Company Act and is regulated as a 

money market fund under § 270.2a–7. 

(3) Portfolio schedule means a 

document prepared in Microsoft Excel 

format that contains the following 

information: 

(i) With respect to each money market 

fund and class thereof, 

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Federal Register / Vol. 74, No. 183 / Wednesday, September 23, 2009 / Rules and Regulations 48381 

(A) Name of the money market fund 

and class; 

(B) SEC file number of the money 

market fund; 

(C) Net asset value per share used to 

effect shareholder transactions; 

(D) Most recent market-based net asset 

value (including the value of any capital 

support agreement); 

(E) Most recent market-based net asset 

value (excluding the value of any capital 

support agreement); 

(F) Date as of which the most recent 

market-based net asset value was 

calculated; 

(G) Total assets of the fund; 

(H) Total net assets of the fund; and 

(I) Number of shares outstanding; and 

(ii) With respect to each security held 

by the money market fund: 

(A) Name of the security; 

(B) CUSIP number (if any); 

(C) Principal amount; 

(D) Maturity date as determined under 

§ 270.2a–7; 

(E) Final maturity date, if different 

from the maturity date as determined 

under § 270.2a–7; 

(F) Categorization of the security’s 

status as a ‘‘First Tier Security,’’ 

‘‘Second Tier Security’’ or a security 

that is no longer an ‘‘Eligible Security’’ 

under § 270.2a–7; 

(G) The most recent market-based 

price (including the value of any capital 

support agreement), or appropriate 

substitute for such price, in which case 

the portfolio schedule or an exhibit to 

it must describe with reasonable 

specificity the appropriate substitute; 

(H) The most recent market-based 

price (excluding the value of any capital 

support agreement), or appropriate 

substitute for such price, in which case 

the portfolio schedule or an exhibit to 

it must describe with reasonable 

specificity the appropriate substitute; 

(I) The amortized cost value; and 

(J) In the case of a tax-exempt 

security, whether there is a demand 

feature, as defined in § 270.2a–7(a)(8). 

(c) Nonpublic information. 

Information provided to the 

Commission pursuant to this section 

shall be nonpublic to the extent 

permitted by law. 

(d) Expiration. This section will 

expire on September 17, 2010. 

By the Commission. 

Dated: September 18, 2009 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–22900 Filed 9–18–09; 4:15 pm] 

BILLING CODE 8010–01–P 

SOCIAL SECURITY ADMINISTRATION 

20 CFR Parts 404 and 416 

[Docket No. SSA–2008–0030] 

RIN 0960–AG82 

Authorization of Representative Fees 

AGENCY: Social Security Administration. 

ACTION: Final rule. 

SUMMARY: We are revising our rules to 

allow representatives, in certain 

instances, to charge and receive a fee 

from third-party entities without 

requiring our authorization. We are also 

eliminating the requirement that we 

authorize fees for legal guardians or 

court-appointed representatives who 

represent claimants before us if a court 

has already authorized the fees. We are 

revising our rules to reflect changes in 

representatives’ business practices and 

in the ways claimants obtain 

representation, and to improve the 

efficiency of our representative fee 

process. 

DATES: This final rule is effective on 

October 23, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Joann S. Anderson, Office of Income 

Security Programs, Social Security 

Administration, 6401 Security 

Boulevard, Baltimore, MD 21235–6401, 

(410) 965–6716. For information on 

eligibility or filing for benefits, call our 

national toll-free number, 1–800–772– 

1213 or TTY 1–800–325–0778, or visit 

our Internet site, Social Security Online, 

at http://www.socialsecurity.gov. 

SUPPLEMENTARY INFORMATION: 

Electronic Version 

The electronic file of this document is 

available on the date of publication in 

the Federal Register at http:// 

www.gpoaccess.gov/fr/index.html. 

Explanation of Changes 

Authority 

We may issue regulations to 

administer the Social Security Act (Act). 

42 U.S.C. 405(a), 902(a)(5), and 

1383(d)(1). We also have authority to 

issue regulations allowing attorneys and 

non-attorneys to represent claimants 

before us and to set the maximum fees 

for those services. 42 U.S.C. 406(a)(1) 

and 1383(d)(2). Based on this authority, 

we are revising our current regulations 

on fees paid to claimant representatives 

found in part 404 subpart R and part 

416 subpart O. 

Background 

Generally, representatives must obtain 

our authorization before charging or 

receiving a fee for representing 

claimants before us. 20 CFR 404.1720 

and 416.1520. We also prohibit 

representatives from charging or 

receiving fees that are more than the 

amount we authorize regardless of 

whether the fee is charged to, or 

received from, the claimants or someone 

else. 20 CFR 404.1720(b)(3) and 

416.1520(b)(3). However, if certain 

criteria are met, we do not need to 

authorize a fee if a nonprofit 

organization or a government agency 

pays the fee out of funds provided or 

administered by a government entity. 

Social Security Ruling (SSR) 85–3. 

Changes 

This final rule allows representatives, 

in certain cases, to be paid fees for 

representing claimants before us 

without requiring our authorization. 

The primary reason that we set 

maximum fees is to protect claimants 

and auxiliary beneficiaries. 

Nevertheless, when certain third parties 

are responsible for paying the 

representative for his or her services, 

there is no risk that the claimant or 

auxiliary beneficiaries will be charged 

an unreasonable fee. Third-party 

entities, such as insurance companies, 

often provide representation to 

claimants and pay the representatives’ 

fees at no cost to the claimants or 

auxiliary beneficiaries. We do not 

believe that we need to authorize fee 

arrangements between representatives 

and third-party entities if claimants and 

auxiliary beneficiaries are not 

responsible for paying fees or expenses 

directly or indirectly. 

Similarly, there is no reason to require 

legal guardians or court-appointed 

representatives to obtain our 

authorization for their fees if a court has 

already authorized the fees. In our 

experience, we have found courtauthorized fees reasonable. Before it 

authorizes a fee, a court considers an 

individual’s best interests when it 

reviews and approves a legal guardian’s 

or representative’s accounting. 

Therefore, when a court authorizes a 

fee, we do not need to duplicate the 

court’s analysis. 

In the notice of proposed rulemaking 

(NPRM) that we published on August 

26, 2008, we stated that we did not need 

to authorize fees if ‘‘a business entity 

independent of your representative’’ 

paid the fees. 73 FR 50260. However, we 

did not define that phrase in the NPRM. 

For clarity and in response to public 

comments, we are using only the term 

‘‘entity’’ and are defining ‘‘entity’’ to 

include ‘‘any business, firm, or other 

association, including but not limited to 

partnerships, corporations, for-profit 

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