The U.K.-based Financial Conduct Authority (FCA) published a release entitled, "UK authorities look to strengthen resilience of Money Market Funds." It explains, "The FCA, jointly with the Bank of England, and with the endorsement of the Treasury, has today published a Discussion Paper on Money Market Fund (MMFs) reform. This seeks views to inform the development of MMF reform proposals. The FCA has also published guidance on the UK MMF Regulation. MMFs are a type of open-ended investment fund, considered to be a low-risk investment that gives investors credit risk diversification and a place to hold, rather than grow, their assets." The update continues, "In March 2020, financial markets reacted to the Covid pandemic with increased selling pressure, volatility and illiquidity. MMFs came under severe strain across major currencies, including in sterling, as investors quickly sought access to cash. There is concern amongst authorities that underlying vulnerabilities within MMFs and threats to financial stability remain. `Financial Stability Board (FSB) members, including the UK, agreed to assess and address the vulnerabilities that MMFs pose in their country <b:>`_. This joint Discussion Paper (DP) aims to gather views to inform the UK's authorities' development of MMF reform proposals." The FCA adds, "We are inviting feedback on the reform options discussed in the DP by 23 July 2022. We will consider this in deciding whether to consult on MMF reform proposals. The FCA is also doing what it can now to deal with MMF resilience and is issuing new non-handbook guidance on the UK MMF Regulation."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2025 2024 2023
January December December
November November
October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2022 2021 2020
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2019 2018 2017
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2016 2015 2014
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2013 2012 2011
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2010 2009 2008
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2007 2006
December December
November November
October October
September September
August
July
June
May
April
March
February
January