SEC Posts FAQs on Reserve, MMFs
The SEC's Division of Investment Management has posted "Responses to Frequently Asked Questions about The Reserve Fund and Money Market Funds. The document says, "In September 2008, The Reserve Fund announced that The Primary Fund, a series of a money market fund registered with the Commission as an investment company under the Investment Company Act of 1940, calculated its net assets at 97 cents per share, and would suspend payment of redemption proceeds to Fund investors, for up to seven days after the redemption, with certain exceptions. Many investors have asked questions about their investments in the Fund and in other money market funds. The following questions and answers have been prepared by and represent the views of the Staff of the Division of Investment Management to assist investors in understanding recent events. They are not rules, regulations, or statements of the Commission. Further, the Commission has neither approved nor disapproved these answers and is not bound by them." Click HERE for the full Q&A. The SEC says it has issued an order permitting the suspension of redemptions at Reserve, and suggests monitoring The Reserve's website, or contacting intermediaries, for information. Finally, the SEC's FAQ says, "The SEC and its staff have been working on a variety of matters concerning money market funds, including staff guidance in connection with financial support for money market funds, compliance inspections and examinations, and possible rule amendments. The SEC also has enforcement powers that can be used in the case of securities law violations."
