I 

116TH CONGRESS 

1ST SESSION H. R. 4492 

To protect the investment choices of investors in the United States, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 25, 2019 

Ms. MOORE (for herself, Mr. STIVERS, Mr. HASTINGS, Mr. GONZALEZ of 

Texas, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. ESTES, and Mr. 

MOONEY of West Virginia) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To protect the investment choices of investors in the United 

States, 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 2019’’. 


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1 SEC. 2. TREATMENT OF MONEY MARKET FUNDS UNDER 

2 THE INVESTMENT COMPANY ACT OF 1940. 

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

4 80a–1 et seq.) is amended by adding at the end the fol5 lowing: 

6 ‘‘SEC. 66. MONEY MARKET FUNDS. 

7 ‘‘(a) DEFINITIONS.—In this section— 

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

9 means Federal assistance used for the purpose of— 

10 ‘‘(A) making any loan to, or purchasing 

11 any stock, equity interest, or debt obligation of, 

12 any money market fund; 

13 ‘‘(B) guaranteeing any loan or debt 

14 issuance of any money market fund; or 

15 ‘‘(C) entering into any assistance arrange16 ment (including tax breaks), loss sharing, or 

17 profit sharing with any money market fund; 

18 and 

19 ‘‘(2) the term ‘Federal assistance’ means— 

20 ‘‘(A) insurance or guarantees by the Fed21 eral Deposit Insurance Corporation; 

22 ‘‘(B) transactions involving the Secretary 

23 of the Treasury; or 

24 ‘‘(C) the use of any advances from any 

25 Federal Reserve credit facility or discount win26 dow that is not part of a program or facility 


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1 with broad-based eligibility established in un2 usual or exigent circumstances. 

3 ‘‘(b) ELECTION TO BE A STABLE VALUE MONEY

4 MARKET FUND.— 

5 ‘‘(1) IN GENERAL.—Notwithstanding any other 

6 provision of this title, any open-end investment com7 pany (or a separate series thereof) that is a money 

8 market fund that relies on section 270.2a–7 of title 

9 17, Code of Federal Regulations, may, in the pro10 spectus included in its registration statement filed 

11 under section 8 state that the company or series has 

12 elected to compute the current price per share, for 

13 purposes of distribution or redemption and repur14 chase, of any redeemable security issued by the com15 pany or series by using the amortized cost method 

16 of valuation, or the penny-rounding method of pric17 ing, regardless of whether its shareholders are lim18 ited to natural persons, if— 

19 ‘‘(A) the objective or principal investment 

20 strategy of the company or series is not incon21 sistent with the generation of income and pres22 ervation of capital through investment in short23 term, high-quality debt securities; 

24 ‘‘(B) the board of directors of the company 

25 or series elects, on behalf of the company or seVerDate Sep 11 2014 02:36 Oct 01, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4492.IH H4492

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1 ries, to maintain a stable net asset value per 

2 share or stable price per share, by using the 

3 amortized cost valuation method, as defined in 

4 section 270.2a–7(a) of title 17, Code of Federal 

5 Regulations (or successor regulation), or the 

6 penny-rounding pricing method, as defined in 

7 section 270.2a–7(a) of title 17, Code of Federal 

8 Regulations (or successor regulation), and the 

9 board of directors of the company has deter10 mined, in good faith, that— 

11 ‘‘(i) it is in the best interests of the 

12 company or series, and its shareholders, to 

13 do so; and 

14 ‘‘(ii) the money market fund will con15 tinue to use such method or methods only 

16 as long as the board of directors believes 

17 that the resulting share price fairly reflects 

18 the market-based net asset value per share 

19 of the company or series; and 

20 ‘‘(C) the company or series will comply 

21 with such quality, maturity, diversification, li22 quidity, and other requirements, including re23 lated procedural and recordkeeping require24 ments, as the Commission, by rule or regulation 

25 or order, may prescribe or has prescribed as 


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1 necessary or appropriate in the public interest 

2 or for the protection of investors to the extent 

3 that such requirements and provisions are not 

4 inconsistent with this section. 

5 ‘‘(2) EXEMPTION FROM DEFAULT LIQUIDITY

6 FEE REQUIREMENTS.—Notwithstanding section 

7 270.2a–7 of title 17, Code of Federal Regulations 

8 (or successor regulation), no company or series that 

9 makes the election under paragraph (1) shall be sub10 ject to the default liquidity fee requirements of sec11 tion 270.2a–7(c)(2)(ii) of title 17, Code of Federal 

12 Regulations (or successor regulation). 

13 ‘‘(c) PROHIBITION AGAINST FEDERAL GOVERNMENT

14 BAILOUTS OF MONEY MARKET FUNDS.—Notwith15 standing any other provision of law (including regula16 tions), covered Federal assistance may not be provided di17 rectly to any money market fund. 

18 ‘‘(d) DISCLOSURE OF THE PROHIBITION AGAINST

19 FEDERAL GOVERNMENT BAILOUTS OF MONEY MARKET

20 FUNDS.— 

21 ‘‘(1) IN GENERAL.—No principal underwriter of 

22 a redeemable security issued by a money market 

23 fund nor any dealer shall offer or sell any such secu24 rity to any person unless the prospectus of the 

25 money market fund and any advertising or sales litVerDate Sep 11 2014 02:36 Oct 01, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4492.IH H4492

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1 erature for such fund prominently discloses the pro2 hibition against direct covered Federal assistance as 

3 described in subsection (c). 

4 ‘‘(2) RULES, REGULATIONS, AND ORDERS.— 

5 The Commission may, after consultation with and 

6 taking into account the views of the Board of Gov7 ernors of the Federal Reserve System, the Federal 

8 Deposit Insurance Corporation, and the Department 

9 of the Treasury, adopt rules and regulations and 

10 issue orders consistent with the protection of inves11 tors, prescribing the manner in which the disclosure 

12 under this subsection shall be provided. 

13 ‘‘(e) CONTINUING OBLIGATION TO MEET REQUIRE14 MENTS OF THIS TITLE.—A company or series that makes 

15 an election under subsection (b)(1) shall remain subject 

16 to the provisions of this title and the rules and regulations 

17 of the Commission thereunder that would otherwise apply 

18 if those provisions do not conflict with the provisions of 

19 this section.’’. 

Æ 


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