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ARTICLE · 11 MAY 2017

New Regulation On Money Market Funds

ELVINGER HOSS PRUSSEN, société anonyme
Explore more from ELVINGER HOSS PRUSSEN, société anonyme

In December 2016, after several years of negotiations, the European institutions agreed on a compromise text on how the money market fund landscape should be structured in Europe...

LuxembourgFinance and Banking
Elvinger Hoss Prussen
Elvinger Hoss Prussen

In December 2016, after several years of negotiations, the European institutions agreed on a compromise text on how the money market fund landscape should be structured in Europe through a Regulation following the financial crisis. Further to the approval of the compromise text by the European Parliament on 5 April 2017, the adoption by the Council should come very soon.

The Regulation will apply to all UCITS and AIFs (and their sub-funds) investing in short-term assets and the investment objective of which is to (i) offer return in line with money market rates and/or (ii) preserve the value of their investment. It is worth noting that the scope is broader than the current CESR guidelines (ESMA predecessor) on money market funds CESR/10-049 which is only applicable to funds which label or market themselves as money market funds.

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