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The Review covers the implementation progress for the eight reform areas covered in IOSCO´s 2012 report on Policy Recommendations for Money Market Funds. It does not assess the consistency of implementation measures against the 2012 IOSCO Report´s recommendations.
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;
· Liquidity management for MMFs;
· 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 Reform Areas.
Implementation progress varied between jurisdictions and between reform areas. Using the most current data available at the reporting date, the global MMF market was dominated by five jurisdictions (the U.S., France, Luxembourg, Ireland and China), which together accounted for almost 90% of global assets under management in MMFs.
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 other participating jurisdictions (Brazil, India, Italy and Thailand) reported having final implementation measures in all Reform Areas.