ABI unveils stricter money market sector

Its creation has followed a review of all ABI sectors in the wake of the financial crisis, with the trade body conducting an industry-wide consultation, including with the FSA. The ABI says the industry required a new classification where the principal and overriding objective is in the stability of capital. To be launched on 1 November 2009, the new Deposit & Treasury sector will contain money market funds which are only allowed to invest in relatively simple instruments, such as time deposits or Government bonds. All instruments held by funds in the new sector must be denomina...