The International Organization of Securities Commissions (IOSCO) published its final report following its peer review of the regulation of money market funds (MMFs). IOSCO looked at the progress of adopting legislation, regulation and other policies relating to MMFs in the following areas:
- Scope of the regulatory reform, including the definition of MMFs in regulation.
- Limitations to the types of assets of, and risks taken by, MMFs.
- Valuation practices of MMFs.
- Liquidity management for MMFs (to ensure that MMFs maintain adequate liquidity resources in normal business conditions as well as in stressed market conditions).
- Consideration of MMFs that offer a stable net asset value, with a view to addressing the risks and issues that may affect the stability of those MMFs.
- Use of ratings in the MMF industry.
- Disclosure to investors.
- MMF practices relating to repurchase agreement transactions.
The review found that the 31 participating jurisdictions (including Ireland) had made progress in introducing implementing measures across all of the reform areas. The progress varied between jurisdictions and reform areas.