SEC seeks OMB extension of Rule 2a-7 information-collection burden

The Securities and Exchange Commission has submitted to the Office of Management and Budget a request to extend the proposed collection of information under Rule 2a-7, Investment Company Act of 1940. The request is identified by OMB Control No. 3235-0268 and is issued under the Paperwork Reduction Act of 1995.

Rule 2a-7 exempts certain money-market funds from standard valuation requirements but imposes recordkeeping obligations that vary by fund type. Boards of directors must adopt written procedures for NAV stabilization, liquidity-fee guidelines, stress-testing, credit-risk monitoring, and adviser-delegated responsibilities. Funds must preserve these documents for six years, retain three-year credit-risk analyses, and post monthly portfolio information on their websites. Funds using share-cancellation methods must also provide advance disclosures to investors.

The SEC estimates that approximately 284 money-market funds are subject to Rule 2a-7. Each fund incurs an average of 700 hours per year for internal recordkeeping and 75 hours for third-party disclosure requirements. The agency projects a total annual burden of 220,100 hours and an aggregate external cost burden of $51,120,000.

The public may view and comment on the information-collection request at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202607-3235-026 or by email to the protected address. Comments must be submitted within 30 days of the notice's publication, by November 9, 2026.

If OMB grants the extension, the existing recordkeeping and disclosure obligations will remain in force, ensuring that money-market funds continue to meet the requirements necessary to obtain or retain benefits under Rule 2a-7.