INTERNATIONAL: Statement by IOSCO Chair on Money Market Fund Reform

Tuesday September 11 2012

Funds-Axis would like to draw your attention to the recent statement made by the Chairman of the IOSCO Board on IOSCO´s work on MMFs.

Please refer to the link below for a full copy of the report:

http://www.iosco.org/news/pdf/IOSCONEWS248.pdf

The statement was issued by the Chairman of the Board of IOSCO, Masamichi Kono, following the press release by SEC Chair Mary Schapiro on August 22, 2012, on Money Market Fund Reform.

The main points that can be drawn from the statement include:

• The reaffirmation that IOSCO will continue its work on the basis of the mandate given to it by the G20 Heads of State and the FSB, to develop policy recommendations for strengthening oversight and regulation of the shadow banking system, including Money Market Funds;
• IOSCO Committee 5 on Investment Management will meet at the end of August to consider the extensive public feedback received to its consultation report “Money Market Fund Systemic Risk Analysis and Reform Options” of 27 April 2012, and to elaborate draft final recommendations for addressing regulatory reforms to mitigate MMF’s susceptibility to runs and other systemic risks;
• The IOSCO Board will determine IOSCO’s further course of action on this important subject at its meeting in Madrid on 3/4 October, and will report to the G20 Finance Ministers meeting in November.

Should you wish to discuss any of the matters raised above, please do not hesitate to email info@funds-axis.com