IMMFA Position Papers on EC MMF Proposal

Published 

As the debate about the EC’s proposed Money Market Fund Regulation enters a new phase, IMMFA has released a collection of papers which explain the background to their position on the key issues.

The European Commission made its proposal for a Regulation on Money Market Funds in September 2013. The MEPs in the European Parliament had their first exchange of views on this topic in the ECON Committee yesterday (4th November 2013).

“Money market funds are an important tool for everyday business in the broder economy, helping thjem to safely manage their surprlus cash and diversify their risk,” said Susan Hindle Barone, Secretary General of IMMFA. “Decisions will be taken in Europe which will profoundly impact the benefits MMFs provide to a very wide range of investors, such as corporates, pensions providers and local governments. We want to be sure that those decisions are as well-informed. These documents are designed to explain the fundamental issue presented by the European Commission’s proposal as simply as possible.”

The documents address the following points:

• IMMFA Fact Sheet on Money Market Funds
• The Problem with Capital Buffers
• The Use of Amortised Cost Accounting
• Definition of Liquidity Requirements
• Fund Level Ratings
• Credit Process and Internal Rating Scale
• Reverse Repurchase Agreements
• Eligible Securitisations – Asset-Backed Commercial Paper 

As well as providing an overall summary of IMMFA’s views on MMF.

IMMFA Summary Views on MMF Reform – October 2013

IMMFA Position Papers on MMF Reform – October 2013

For more information, contact:

Susan Hindle Barone
Secretary General
IMMFA
+44 20 7269 4625
[email protected]

The following documents provide more extensive background on many of the points made above:

IMMFA Position on Capital Buffers – May 2013

IMMFA Summary Paper on Money Market Funds – February 2013

The Use of Amortised Cost Accounting in Money Market Funds – January 2013

Bank Runs, Money Market Funds and the First Mover Advantage – January 2013

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