by Gail Le Coz, Chief Executive, IMMFA
The European money market fund industry has historically been quite disparate, with a plethora of funds operating under varying guidelines. Although regulators are currently seeking to implement additional clarity in this sector, a group of money market fund managers established the Institutional Money Market Funds Association (IMMFA) in 2000 to ensure high standards were maintained and provide appropriate representation for the industry.
IMMFA is the trade association which represents the European triple-A rated money market fund industry. It is the only trade association that specifically represents money market funds. Membership is open to managers of triple-A rated money market funds domiciled in Europe that comply with the IMMFA Code of Practice. Firms who provide services to these fund managers, for example credit rating agencies and the administrative community, are also eligible for membership.
Being a member of IMMFA brings with it certain responsibilities. Investors and potential investors can benefit from an understanding of these duties, which will also help position why IMMFA money market funds remain robust.
Implementing best practices
IMMFA operates with three principal objectives: (i) ensuring its members maintain a high quality product; (ii) informing and influencing policymakers; and (iii) educating investors. The key element in delivering the first objective is the IMMFA Code of Practice. This Code, which was first published in 2003, sets standards for the management and operation of a money market fund. It is designed to deliver best practices across the IMMFA membership and help maintain a high quality product at all times.