Memo #
3298
COMMISSIONER ROBERTS' REMARKS AT INSTITUTE CONFERENCE ON CREDITORS' RIGHTS ISSUES
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November 26, 1991
TO: MONEY MARKET FUNDS AD HOC COMMITTEE NO. 30-91
INVESTMENT ISSUES COMMITTEE NO. 20-91
RE: COMMISSIONER ROBERTS' REMARKS AT INSTITUTE CONFERENCE ON
CREDITORS' RIGHTS ISSUES
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SEC Commissioner Richard Y. Roberts delivered the keynote
speech at the Institute's Conference on Creditors' Rights Issues
for Investment Companies held on November 12, 1991. In his
remarks, Commissioner Roberts addressed the need for further
study of the operation of the corporate, municipal and government
markets.
Specifically, Commissioner Roberts addressed the need for
(1) increased enforcement and surveillance activities of the
fixed income markets by the Commission and the self regulatory
organizations, and (2) improved price transparency in the debt
markets. He commented that the Commission and the industry have
undertaken efforts to improve the availability of information in
and the efficiency of the debt markets. With respect to industry
efforts, Mr. Roberts described the rulemaking petition submitted
by Fidelity Management & Research Company on debt tender offers
and the proposed resolution of the National Federation of
Municipal Analysts to require municipal issuers to indicate to
investors whether or not they will provide secondary market
disclosure. In connection with this proposal, he stated that the
need for current information in the secondary market was
highlighted for him by the problems experienced by tax-exempt
money market funds holding variable rate demand notes that were
issued by Mutual Benefit Life Insurance and that he intends "to
recommend that the staff of the Commission give some thought to
the importance of current information concerning issuers of
variable rate demand notes as they consider amendments to the
regulations governing tax-exempt money market funds."
A copy of Commissioner Roberts' remarks is attached.
Amy B.R. Lancellotta
Associate General Counsel
Attachment