remove references

SEC Proposed Amendments to Remove Credit Ratings in 1940 Act Rules and Forms

On March 3, the SEC proposed rule amendments to remove references to credit ratings in certain rules and forms under the Investment Company Act of 1940, in accordance with the Dodd-Frank Act. The proposed amendments would revise the permissible investment standards for money market funds. A security would no longer need to receive a certain credit rating, but would qualify for investment if the fund’s board or its delegate determines that the security presents minimal credit risks. The SEC’s proposed rule amendments also would remove credit ratings in three other areas: repurchase agreements, certain business and industrial development company (BIDCO) investments, and shareholder reports. Comments on the proposed rule amendments must be submitted by April 25. SEC Release. SEC Proposed Rules.