Global securities regulator, the International Organisation of Securities Commissions, IOSCO, on Wednesday published the final report on the Peer Review of Regulation of Money Market Funds, which describes the implementation progress made by 31 jurisdictions in adopting legislation, regulation and other policies in relation to money market funds (MMFs).
The report which focused on eight (8) areas responds to a request from the G20 Leaders in September 2013 for IOSCO to conduct a peer review on progress regarding MMF regulatory reforms, a statement from the world securities regulator said.
The review covers the implementation progress for the eight (8) reform areas covered in IOSCO´s 2012 report on Policy Recommendations for MMFs.
The reform areas are definition of MMFs in regulation and appropriate inclusion of other investment products presenting features and investment objectives similar to MMFs; limitations to the types of assets of, and risks taken by MMFs; valuation practices of MMFs and liquidity management for MMFs.
Other areas covered include addressing the risks and issues which may affect the stability of MMFs that offer a stable NAV; use of ratings by the MMF industry; disclosure to investors and MMF practices in relation to repurchase agreement transactions.
“Overall, the review found that as of 31 March 2015 – the reporting date – participating jurisdictions had made progress in introducing implementation measures across the eight (8) Reform Areas,” IOSCO affirmed.
According to the Commission, implementation progress varied between jurisdictions and between reform areas. It said using the most current data available at the reporting date, the global MMF market was dominated by five (5) jurisdictions (the U.S., France, Luxembourg, Ireland and China), which together accounted for almost 90 percent of global assets under management in MMFs.
The report says for these jurisdictions, only the U.S. reported having final implementation measures in all Reform Areas. China and the EU members were still in the process of developing and finalising relevant reforms.
“For jurisdictions with smaller MMF markets, implementation progress was less advanced: only four (4) other participating jurisdictions (Brazil, India, Italy and Thailand) reported having final implementation measures in all Reform Areas,” IOSCO added.


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