SEC Adopts Temporary Rule Requiring Disclosure of Money Market Fund Portfolio Holdings

September 24, 2009
The Securities and Exchange Commission has adopted an interim final temporary rule under the Investment Company Act of 1940 that requires a money market mutual fund (“money fund”) to report its portfolio holdings and valuation information to the SEC under certain circumstances. Specifically, Rule 30b1-6T requires a money fund to provide detailed weekly portfolio schedules and valuation information to the SEC if the money fund’s market-based net asset value per share falls below $.9975. The final temporary rule became immediately effective on September 18, 2009 and will expire on September 17, 2010. This update examines the final temporary rule and its possible effects on issuers and others.