April 30, 1990
TO: BOARD OF GOVERNORS NO. 33-90
MONEY MARKET MEMBERS - ONE PER COMPLEX NO. 7-90
SEC RULES COMMITTEE NO. 24-90
STATE LIAISON COMMITTEE NO. 9-90
UNIT INVESTMENT TRUST COMMITTEE NO. 20-90
CALIFORNIA MEMBERS
RE: CALIFORNIA MONEY MARKET LEGISLATION DROPPED
__________________________________________________________
As we previously informed you, the Chairman of the
California Senate Committee on Banking and Commerce introduced a
bill, S.B. 2493, that would require all broker-dealers to provide
prospective purchasers with a disclosure statement prior to the
sale or offer of any securities not insured by an agency of the
federal or state government. (See Memorandum to Board of
Governors, No. 22-90, Money Market Members-One Per Complex No.
4-90, SEC Rules Committee No. 20-90, State Liaison Committee No.
7-90, Unit Investment Trust Committee No. 15-90, Broker/Dealer
Advisory Committee No. 14-90, Broker/Dealer Associate Members No.
2-90, dated April 4, 1990.)
The Institute testified at the March hearing of the
Committee and submitted thereafter additional written comments in
opposition to the bill. The Chair of the Committee subsequently
amended S.B. 2493 to apply only to money market funds with check
writing privileges.
We are pleased to inform you that after the Institute's
testimony in opposition to the amended bill on April 25, 1990,
the Chair of the Committee determined that such disclosure was
unnecessary and decided to drop the bill.
Patricia Louie
Assistant General Counsel