II 

114TH CONGRESS 

1ST SESSION S. 1802 

To protect the investment choices of American investors, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 16, 2015 

Mr. TOOMEY (for himself, Mr. MANCHIN, Mr. CRAPO, and Mr. MENENDEZ) 

introduced the following bill; which was read twice and referred to the 

Committee on Banking, Housing, and Urban Affairs 

A BILL 

To protect the investment choices of American investors, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Financial 

5 Choice and Capital Markets Protection Act of 2015’’. 

6 SEC. 2. TREATMENT OF MONEY MARKET FUNDS UNDER 

7 THE INVESTMENT COMPANY ACT OF 1940. 

8 The Investment Company Act of 1940 (15 U.S.C. 

9 80a et seq.) is amended by adding at the end the following: 


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1 ‘‘SEC. 66. MONEY MARKET FUNDS. 

2 ‘‘(a) ELECTION TO BE TREATED AS MONEY MAR3 KET FUND.—Notwithstanding any other provision of this 

4 title, any open-end investment company (or a separate se5 ries thereof) may elect, in its registration statement filed 

6 under section 8, to be a money market fund and may com7 pute the current price per share, for purposes of distribu8 tion or redemption and repurchase, of any redeemable se9 curity issued by the company using the amortized cost 

10 method of valuation, or the penny-rounding method of 

11 pricing, regardless of whether its shareholders are limited 

12 to natural persons, if— 

13 ‘‘(1) the company or series has as its objective 

14 the generation of income and preservation of capital 

15 through investment in short-term, high-quality debt 

16 securities; 

17 ‘‘(2) if the company or series elects to maintain 

18 a stable net asset value per share or stable price per 

19 share, by virtue of the amortized cost valuation 

20 method, as that term is defined in section 270.2a– 

21 7(a)(2) of title 17, Code of Federal Regulations, as 

22 in effect on the date of enactment of this section, 

23 and in accordance with the requirements specified 

24 with respect to the use of the amortized cost valu25 ation method as set forth in that section, as in effect 

26 on the date of enactment of this section, or the 


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1 penny-rounding pricing method, as that term is de2 fined in section 270.2a–7(a)(21) of title 17, Code of 

3 Federal Regulations, as in effect on the date of en4 actment of this section, and in accordance with the 

5 requirements specified with respect to the use of the 

6 penny-rounding pricing method as set forth in that 

7 section, as in effect on the date of enactment of this 

8 section, the board of directors of the company has 

9 determined, in good faith, that— 

10 ‘‘(A) it is in the best interests of the com11 pany or series, and its shareholders, to do so; 

12 and 

13 ‘‘(B) the money market fund will continue 

14 to use such method or methods only as long as 

15 the board of directors believes that the resulting 

16 share price fairly reflects the market-based net 

17 asset value per share of the company or series; 

18 and 

19 ‘‘(3) the company or series agrees to comply 

20 with such quality, maturity, diversification, and li21 quidity requirements, including reasonable proce22 dural and recordkeeping requirements and provisions 

23 relating to liquidity fees and restrictions on redemp24 tions, as the Commission, by rule or regulation or 

25 order, may prescribe or has prescribed as necessary 


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1 or appropriate in the public interest or for the pro2 tection of investors to the extent that such require3 ments and provisions are not inconsistent with this 

4 section. 

5 ‘‘(b) PROHIBITION AGAINST FEDERAL GOVERNMENT

6 BAILOUTS OF MONEY MARKET FUNDS.— 

7 ‘‘(1) DEFINITIONS.—In this subsection— 

8 ‘‘(A) the term ‘covered Federal assistance’ 

9 means Federal assistance used for the purpose 

10 of— 

11 ‘‘(i) making any loan to, or pur12 chasing any stock, equity interest, or debt 

13 obligation of, any money market fund; 

14 ‘‘(ii) guaranteeing any loan or debt 

15 issuance of any money market fund; or 

16 ‘‘(iii) entering into any assistance ar17 rangement (including tax breaks), loss 

18 sharing, or profit sharing with any money 

19 market fund; and 

20 ‘‘(B) the term ‘Federal assistance’ 

21 means— 

22 ‘‘(i) insurance or guarantees by the 

23 Federal Deposit Insurance Corporation; 

24 ‘‘(ii) transactions involving the Sec25 retary of the Treasury; or 


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1 ‘‘(iii) the use of any advances from 

2 any Federal Reserve credit facility or dis3 count window that is not part of a pro4 gram or facility with broad-based eligibility 

5 established in unusual or exigent cir6 cumstances. 

7 ‘‘(2) PROHIBITION.—Notwithstanding any other 

8 provision of law (including regulations), covered 

9 Federal assistance may not be provided directly to 

10 any money market fund. 

11 ‘‘(c) DISCLOSURE OF THE PROHIBITION AGAINST

12 FEDERAL GOVERNMENT BAILOUTS OF MONEY MARKET

13 FUNDS.—No principal underwriter of a redeemable secu14 rity issued by a money market fund nor any dealer shall 

15 offer or sell any such security to any person unless the 

16 prospectus of the money market fund and any advertising 

17 or sales literature for such fund prominently discloses the 

18 prohibition against direct covered Federal assistance as 

19 described in subsection (b). The Commission may, after 

20 consultation with and taking into account the views of the 

21 Board of Governors of the Federal Reserve System, the 

22 Federal Deposit Insurance Corporation, and the Depart23 ment of the Treasury, adopt rules and regulations, and 

24 issue orders consistent with the protection of investors, 


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1 prescribing the manner in which the disclosure under this 

2 subsection shall be provided. 

3 ‘‘(d) CONTINUING OBLIGATION TO MEET REQUIRE4 MENTS OF THIS TITLE.—A company that elects to be a 

5 money market fund in accordance with subsection (a) or 

6 is otherwise a money market fund operating in accordance 

7 with the rules and regulations of the Commission applica8 ble to money market funds shall remain subject to the pro9 visions of this title and the rules and regulations of the 

10 Commission thereunder that would otherwise apply to a 

11 registered open-end company, as long as those provisions 

12 do not conflict with the provisions of this section.’’. 

Æ 


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