Regulatory Notice 08-48

Special Allowance to Permit Bulk Exchanges of Shares of Certain Reserve Funds

FINRA is issuing this Notice to allow member firms to exchange customer assets that are invested in the Reserve Primary Fund, the Reserve Yield Plus Fund, and the Reserve International Liquidity Fund (the Funds) in bulk for shares of another money market mutual fund or for deposits in an FDIC insured bank without complying with all of the requirements of NASD Rule 2510(d), subject to certain conditions. In particular, firms may:

  • Exchange shares of the Funds either for shares of another money market mutual fund or an FDIC-insured deposit account; and
  • Conduct the bulk exchange1 prior to notifying customers, provided written notification is sent out promptly thereafter.

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