Cesr bans enhanced money market funds

The Committee of European Securities Regulators (CESR) published on the 19 May 2010 its guidelines on a common definition of European money market funds.

The guidelines aim to improve investor protection by setting out criteria to be applied by any fund that wishes to market itself as a money market fund. The criteria reflect the fact that investors in money market funds expect the capital value of their investment to be maintained while retaining the ability to withdraw their capital on a daily basis.

A common definition will also help provide a more detailed understanding of the distinction between funds which operate in a very restricted fashion and those which follow a more ‘enhanced’ approach.

Wikipedia: Money Market Fund http://en.wikipedia.org/wiki/Money_market_fund

Committee of European Securities Regulators: Homepage http://www.cesr-eu.org/

CESR: News, 19.5.10: CESR sets out harmonised definition of European money market funds http://www.cesr-eu.org/index.php?page=home_details&id=478

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