August 19, 1994
TO: BOARD OF GOVERNORS NO. 82-94
FEDERAL LEGISLATION COMMITTEE NO. 25-94
FEDERAL LEGISLATION MEMBERS NO. 22-94
RE: CONGRESS APPROVES LEGISLATION TO PREVENT FTC OVERSIGHT OF
MONEY FUNDS
__________________________________________________________
On August 19, Congress approved the Conference Committee
report on H.R. 4603, FY 1995 Appropriations for The Departments
of Commerce, Justice, State, the Judiciary, and Related Agencies.
Among other things, this legislation contains language which
prevents the Federal Trade Commission from making expenditures
for the enforcement of Section 151 of the Federal Deposit
Insurance Company Improvement Act of 1991 (FDICIA).
As we have previously reported, Section 151 of FDICIA
contains language which requires the FTC to oversee non-insured
depository institutions. The FTC maintains that it has the
authority to include oversight of money market mutual funds
pursuant to this requirement -- a determination with which the
Institute takes strong exception.
The inclusion of prohibitory language in H.R. 4603 means
that the FTC is enjoined form enforcing this Section with respect
to any entities, money funds included.
The Institute strongly supported the inclusion of this
language in H.R. 4603. The legislation will be sent to the
President's desk for signature in the near future.
We will keep you informed of further developments. If you
wish additional information, please contact the Legislative
Affairs Department at 202/326-5890.
This memo can also be found on FUNDS, the Institute's Fund
User Network and Delivery System, under "Legislative Affairs;
Washington Update."
Julie Domenick
Senior Vice President
Legislative Affairs