As detailed in the September bulletin, in September 2013, the European Commission proposed a European framework designed for Money Market Funds (MMFs). The Committee on Economic and Monetary Affairs (ECON) subsequently published its draft report which is to be voted on by ECON on 12 February 2014 (the vote will be in respect of the draft Regulation and the amendments put forward). The report is lengthy and includes an interesting quote "There is no evidence the CNAV funds performed worse than VNAV funds during the financial crisis". It looks at NAV buffers, conversion of CNAV MMFs, marketing restrictions, third country MMFs and MMF managers, external support, use of amortised cost accounting, remuneration, and direct supervision of large MMFs by ESMA.

The Regulation is a long way from being finalised. Following the ECON vote, the EU Parliamentary debate is scheduled for 15 April 2014.