AMF welcomes CESR's adoption of the European definition of money market funds
20 May 2010
AMF believes that the new definition will allow for an appropriate level of investor protection and is also consistent with the AMF's position, namely that investors should be able to identify those money market funds which are particularly suitable for very short-term investments.
Having played an active part in the work of the Committee of European Securities Regulators (CESR), the AMF welcomes the final adoption of a harmonised European definition of money market funds, which represents a significant step forward.
This European-level initiative confirms the approach pursued by the AMF, which introduced a classification of general purpose funds some time ago.
The new definition will allow for an appropriate level of investor protection and is also consistent with the AMF's position, namely that investors should be able to identify those money market funds which are particularly suitable for very short-term investments.
The AMF intends to transpose the CESR definition into its fund classification system shortly.
Commenting, AMF Chairman Jean-Pierre Jouyet said: "It was important to establish a harmonised approach for dealing with products that are widely available and used by all types of investors, especially individuals. This consensus shows that the European financial services market is not being built by rolling back the regulatory framework but by ensuring greater transparency and stronger investor protection".
© AMF - Autorité des Marchés Financiers
