The Financial Sector Supervisory Authority issued a circular on
December 2, 2014 adapting Luxembourg's regulatory framework for
investment funds under the legislation of December 17, 2010 in line
with the changes set out in the European Securities and Market
Authority's Guidelines on a common definition of money market
funds, issued on August 22 last year.
The circular has immediate effect, superseding the previous
rules on money market funds, issued by ESMA's predecessor, the
Committee of European Securities Regulators, in May 2010, and
incorporated into Luxembourg's regulatory framework through
CSSF Circular 11/498.
As implemented in CSSF Circular 14/598, the ESMA guidance now
requires the management company of a money market fund or
short-term money market fund (or the fund itself, if self-managed)
to put establish an internal documented assessment process to
determine whether the money market instruments in which it invests
can be considered of high quality.
