Regulatory Notice 08-58

Guidance on Disclosure Concerning the U.S. Treasury Department's Temporary Guarantee Program for Money Market Mutual Funds

Executive Summary

FINRA is issuing this Notice to provide guidance to firms regarding disclosure concerning the U.S. Treasury Department's (Treasury) temporary guarantee program for the U.S. money market mutual fund industry (Program). The Program, which was announced by the Treasury on September 19, 2008, covers the shares of a participating money market mutual fund that were owned by a beneficial shareholder as of the close of business on September 19, 2008. The Program will expire on December 18, 2008, unless extended by the Treasury.

 

FINRA expects a firm that refers to the Program in its communications to do so in a manner consistent with our rules. FINRA also expects a firm that receives transferred customer accounts during the time the Program is in effect to inform customers that they could lose coverage under the Program if the customers liquidate or transfer their shares in a participating money market mutual fund. Firms should review the Treasury's Web page concerning the Program for more details.1

 

Questions concerning this Notice should be directed to Thomas M. Selman, Executive Vice President, Regulatory Policy, at (202) 728-6977, or Joseph P. Savage, Vice President and Counsel, Investment Companies Regulation, at (240) 386-4534.

 

1 See http://www.treas.gov/offices/domestic-finance/key-initiatives/money-market-fund.shtml.