Money Market Funds: Impact Assessment Of Substantive EP Amendments

Europe Economics was asked to assess the feasibility and impacts of potential changes contained in a number of substantive amendments to the proposed regulation on Money Market Funds (MMFs) being considered by the Committee on Economic and Monetary Affairs of the European Parliament. The amendments in question would require any constant net asset value (CNAV) MMF to be either a Retail CNAV – only eligible for a limited range of investors such as natural persons, charities and public bodies – or an EU Public Debt CNAV – which would have to hold at least 80 per cent of its investments in instruments based on debt issued by EU Member States.

In order to complete that assessment, the European Parliamentary Research Service (EPRS) conducted a number of interviews with operators of MMFs, issuers of the money market instruments in which they invest (MMIs) and investors in MMFs, and worked with existing research, including the impact assessment accompanying the original Commission proposal.

Written by Claudio Collovà.

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

EP: EPRS: Study, March 2015: Money Market Funds: Impact Assessment Of Substantive EP Amendments http://www.europarl.europa.eu/RegData/etudes/STUD/2015/547545/EPRS_STU(2015)547545_EN.pdf

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