We learned from Joan Ohlbaum Swirsky of Stradley Ronon Stevens & Young of an "Advance Notice of Proposed Rulemaking Regarding Authority To Require Supervision and Regulation of Certain Nonbank Financial Companies," which raises the possibility that the Financial Stability Oversight Council could designate money market funds as nonbank financial companies. The just-published "Advance notice of proposed rulemaking," says, "Section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the 'DFA') gives the Financial Stability Oversight Council (the 'Council') the authority to require that a nonbank financial company be supervised by the Board of Governors of the Federal Reserve System ('Board of Governors') and subject to prudential standards if the Council determines that material financial distress at such a firm, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the firm, could pose a threat to the financial stability of the United States. This advance notice of proposed rulemaking (ANPR) invites public comment on the criteria that should inform the Council's designation of nonbank financial companies under the DFA. Comments on this ANPR must be received by November 5, 2010." Also, the SEC just minorly amended its "Staff Responses to Questions About Money Market Fund Reform" Q&A and "Staff Responses to Questions about Rule 30b1-7 and Form N-MFP."
