Commission Publishes Proposals For A Regulation On MMFs

On September 4, a proposed Regulation on money market funds (MMFs) was published by the Commission, accompanied by a press release, impact assessment, FAQs and various other documents.  These can be found, along with further information, on a specialized webpage set up by the Commission.  The proposed Regulation's purpose is to help MMFs, through enhancing their liquidity profile and stability, better withstand redemption pressure in stressed market conditions.

Among other things, the Regulation contains provisions on:

• Prescribed levels of daily and weekly liquidity;
• Clear labeling;
• A capital bidder of 3% for constant net asset value funds;
• Customer profiling policies; and