The discussion regarding the regulatory fate of money market funds (MMFs) has been more muted in Europe in recent months. Progress was slight under the Latvian Presidency of the European Council during the first half of 2015, and similarly under the Luxembourg Presidency in this latter half of 2015.
Progress to date
As with other legislation, the first step is for the European Commission (EC) to make a proposal, in this case for a Regulation. With a Regulation (as opposed to a Directive for example) the rules will be applied in the same format across each of the Member States (MS), without leaving leeway for each State to interpret the implementation.
Once the EC’s proposal is made, it is considered by both the European Parliament (EP) – made up of MEPs – and by the Council of Ministers – made up of representatives of the governments of each of the 28 Member States. Each of these other bodies agrees its own version of the proposed legislation. Once this has happened, all three parties, the EC, the EP and the Council, come together in a process called ‘Trilogue’ through which the various proposals are debated and a final version of the Regulation is agreed.