IMMFA Considers Pushing for the Regulation of European Money Funds. The
Institutional Money Market Funds Association (IMMFA), a group representing
European AAA-rated money funds, is "
consulting Members, Associate Members and other interested parties that operate within the money market fund industry about the
most appropriate approach to the regulation of 'treasury style' money market funds and in particular on the possibility of
creating a standard local regulatory regime to replace the existing IMMFA Code of Practice." Europe currently has no standardized definition or regulation of "
money market funds", but has a growing cadre of Dublin-
registered, stable-
value "
liquidity" funds (
270 billion pound sterling or $
355 billion in assets says the document).
We urge IMMFA members to resist half-measures and to back full Europe-wide regulation, defining money market funds with quality, maturity, and diversity standards equivalent to the U.S.'s Rule 2a-7. (
E-
mail
info@cranedata.us if you'
d like to participate in a trial of
Money Fund Intelligence International, a publication covering non-
US money funds, which will be rolled out in the coming months.)