The European Fund and Asset Management Association (EFAMA) and the Institutional Money Market Funds Association (IMMFA) published a report on European classification and definition of money market funds (MMFs) and are working to reserve the money market fund label to funds designed to generate money market like returns, while aiming at preserving capital and maintaining strong liquidity.
The report aims to:
- define rules that investment funds need to follow to be allowed to be labelled "money market funds".
- define MMFs in a way that clearly informs investors about their risk characteristics. It is proposed to distinguish between two types of MMFs: short term and regular