"These rules will go a long way in improving supervision and regulation of a largely unregulated sector”, said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency. "Whilst money market funds are vital to investors and issuers alike, the crisis showed us that they can also be vulnerable to shocks."
The regulation lays down rules and common standards to:
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ensure stability in the structure of money market funds;
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guarantee that they invest in well-diversified assets of a goodcredit quality
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increase the liquidity of money market funds, to ensure that they can face sudden redemption requests.
It was adopted at a meeting of the General Affairs Council, without discussion.
The European Parliament approved the text on 5 April 2017, following an agreement between Council and Parliament representatives on 7 December 2016.
Most provisions will apply 12 months after entry into force.
Press release
Regulation
© European Council
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