Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 2a-7

Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736.

Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. § 3501 et seq.), the Securities and Exchange Commission (SEC or “Commission”) is soliciting comments on the proposed collection of information described below.

Money market funds are open-end management investment companies that differ from other open-end management investment companies in that they seek to maintain a stable price per share, usually $1.00, or seek to minimize fluctuations in their price per share. Rule 2a-7 [17 CFR 270.2a-7] under the Investment Company Act of 1940 [15 U.S.C. 80a-1 et seq.] (the “Act”) exempts certain money market funds from the valuation requirements of the Act, and, subject to certain risk-limiting conditions, permits these money market funds to use the “amortized cost method” of asset valuation or the “penny-rounding method” of share pricing.

Rule 2a-7 imposes certain recordkeeping obligations on money market funds, some of which vary based on the type of money market fund. For example, the board of directors of a government or retail money market fund, in supervising the fund's operations, must establish written procedures designed to stabilize the fund's net asset value (“NAV”). An institutional prime or institutional tax-exempt money market fund must have written guidelines established and reviewed by the board related to mandatory liquidity fees, while non-government money market funds similarly must have written guidelines related to discretionary liquidity fees. In addition, money market fund boards must adopt written procedures that provide for periodic stress testing (and reporting to the board) of the fund's ability to minimize principal volatility and maintain sufficient minimum liquidity under certain hypothetical events and to maintain policies and procedures that specifically address ongoing minimal credit risk monitoring. A money market fund's board must also adopt guidelines and procedures ( printed page 49460) relating to certain responsibilities it delegates to the fund's investment adviser. These procedures and guidelines typically address various aspects of the fund's operations. The fund must maintain and preserve for six years a written copy of both these procedures and guidelines. The fund also must maintain and preserve for six years a written record of the board's considerations and actions taken in connection with the discharge of its responsibilities, to be included in the board's minutes. In addition, the fund must maintain and preserve for three years written records of certain credit risk analyses, evaluations with respect to securities subject to demand features or guarantees, and determinations with respect to adjustable rate securities and asset backed securities.

Funds must also post monthly portfolio information and certain other information on their websites and maintain records of creditworthiness evaluations on counterparties to repurchase agreements that the fund intends to “look through” for purposes of rule 2a-7's diversification limitations. If a retail or government money market fund determines to use a share cancellation method to maintain a stable net asset value in a period with negative interest rates, it must provide certain disclosures to investors in advance of using share cancellation and when share cancellation is used. Compliance with rule 2a-7's information collection requirements is required to obtain or retain benefits.

We estimate that approximately 284 money market funds are subject to rule 2a-7. We estimate that each money market fund incurs an average of 700 hours per year to comply with the recordkeeping requirements of rule 2a-7 (relating to the establishment and maintenance of policies and procedures, records of credit risk analyses, certain notices or reports to the fund's board of directors, determinations made by the fund's board of directors, and other information collection requirements that do not involve third-party disclosures) and an average of 75 hours per year to comply with the third-party disclosure requirements of rule 2a-7 (including requirements to provide certain information on money market fund websites and requirements for certain funds to provide disclosures to investors related to share cancellation). We estimate the total annual burden of the collection of information requirements of rule 2a-7 to be 220,100 hours, with an aggregate external cost burden of $51,120,000.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB Control Number.

Written comments are invited on: (a) whether this proposed collection of information is necessary for the proper performance of the functions of the SEC, including whether the information will have practical utility; (b) the accuracy of the SEC's estimate of the burden imposed by the proposed collection of information, including the validity of the methodology and the assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated, electronic collection techniques or other forms of information technology.

Please direct your written comments on this 60-Day Collection Notice to Austin Gerig, Director/Chief Data Officer, Securities and Exchange Commission, c/o Tanya Ruttenberg via email to PaperworkReductionAct@sec.gov by October 5, 2026.