Periodic Review of the Designations of the Mechanical Licensing Collective and Digital Licensee Coordinator

------------------------------------------------------------------- [[Page 33229]] Absent that direction, the MLC has articulated one potential interpretation of the statute, and the available information suggests it has adopted a relatively routine and low-risk investment strategy to implement that interpretation. This was a rational response to a difficult situation and is not a reason to withhold the designation. Nonetheless, it is not clear that the MLC's ledger-based approach is consistent with Congressional intent and, even assuming it is, there appears to be room for improvement in its execution. While the Office appreciates the MLC's deference to financial advisors, we encourage it to work with those advisors to reevaluate (1) the viability of a treasury-based portfolio, taking into consideration the size of its current reserves and the ongoing interest earned on royalties pending distribution; (2) the potential for reallocating investment management fees to the administrative assessment; and (3) any market timing risks associated with its current investments. The Office also notes that the MMA directs the MLC to ``ensure that the policies and practices of the collective are transparent and accountable.'' \362\ This creates heightened expectations for transparency and oversight regarding its handling of large sums of money on behalf of others, even where the MLC may be