The IMA is to monitor the holdings of funds in the Money Market sector for the first time, in line with new FSA and European requirements.
A policy statement published by the FSA last month saw the regulator confirm it had introduced European Securities and Markets Authority (ESMA) guidelines on a common definition of European money market funds, within the FSA Collective Investment Schemes handbook.
ESMA - then the Committee of European Securities Regulators - sought to harmonise European money market fund definitions in the wake of the financial crisis in 2008, and subsequently created two categories: Money Market Funds and Short-Term Money Market Funds.
The deadline for compliance with the definition guidelines was 1 July 2011; the IMA has adopted in principle the new definition of money market funds as of that date, in line with the FSA's publication of the definitions.
Firms have until 1 January 2012 to bring their funds into compliance with the new rules and the sector definition, though the IMA itself says it has not yet finalised changes to the IMA Money Market Sector and is still consulting with its members over the new definition.
Funds within the Money Market sector will be monitored as of the end of the transition period on 1 January 2012.
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