September 19, 1990
TO: SEC RULES MEMBERS NO. 65-90
RE: INSTITUTE LETTER TO WASHINGTON ON BONDING REQUIREMENTS
__________________________________________________________
As we previously informed you, legislation was enacted in
Washington authorizing the state of Washington or local
governments in the state of Washington to invest in certain
mutual funds or money market funds provided that the mutual fund
or money market fund posted a bond with the office of risk
management. (See Memorandum to SEC Rules Members No. 46-90.)
The Institute submitted a letter to the Washington
Treasurer's Office recommending that in light of the detailed
federal regulation of mutual funds, particularly the bond
requirement set forth in Section 17(g) of the Investment Company
Act of 1940, that the fidelity bond required by the SEC be deemed
to satisfy the Washington bond requirement. A copy of the
Institute's letter is attached.
We will keep you advised of developments.
Patricia Louie
Assistant General Counsel
Attachment