For immediate release: 19 May 2010
EFAMA AND IMMFA WELCOME PAN-EUROPEAN DEFINITION OF MONEY MARKET FUND
The European Funds and Asset Management Association (EFAMA) and the Institutional Money Market Funds Association (IMMFA) today welcome the CESR definition of a European money market fund. This definition includes detailed guidelines regarding the management and operation of a money market fund.
Following on from the publication of these guidelines, each country will need to implement the common characterisation of European money market funds in its domestic financial services legislation. Once this has been accomplished, the harmonised definition will enable investors to compare money market funds across Europe on a like-for-like basis.
Commenting Peter de Proft, Director General of EFAMA, said:
"We truly welcome the definition of money market funds and commend CESR on their excellent work. Creating the first pan-European definition of a money market fund will provide investors with much needed guidance regarding money market funds. The two categories will allow investors to choose between funds with differing objectives, whilst also specifying what may be included in a money market fund. We look forward to continuing to work closely with CESR.”
Commenting Gail Le Coz, Chief Executive of IMMFA said:
“These guidelines seek to improve investor protection. IMMFA fully supports and shares that goal, as evidenced by the amendments which we made to our Code of Practice in December 2009. This set of best practice standards for the management and operations of triple-A rated money market funds includes provisions to limit interest rate, credit and liquidity risk and imposes additional disclosure obligations on funds. In many ways, the short-term category reflects the practices that our members have employed for some time.”
Notes to editors:
1. The CESR guidelines become effective from 1 July 2011. A grandfathering period of 6 months will apply once the guidelines are introduced, after which all European money market funds must be compliant. A copy of the CESR guidelines is available at www.cesr-eu.org.
2. About EFAMA - EFAMA is the representative association for the European investment management industry. EFAMA represents through its 26 member associations and 42 corporate members about EUR 13 trillion in assets under management of which EUR 7 trillion managed by 53,000 investment funds at end 2009. For more information about EFAMA, please visit www.efama.org.
3. About IMMFA – The institutional Money Market Funds Association (IMMFA) was established on 14 June 2000, and currently has 35 members. It is the trade association which represents the European triple-A rated money market funds industry. Funds under management exceeded €425 billion as at January 2010. For more information, please refer to the website at www.immfa.org.
For further information, please contact:
Peter de Proft Gail Le Coz
Director General Chief Executive
+32 2 513 3969 +44 207 269 4662