New Money Market Regulations

Read more about the measures by the mas association of banks in singapore the life insurance association the general insurance association and the finance houses association of singapore to help individuals and smes affected by the covid 19 pandemic.

New money market regulations. Money market funds could lose their 1 a share price tag. This document summarises the main changes introduced by the regulation and the impact this will have on insight s money market funds. New regulations for money market funds. Explaining the changes.

Investors in money market funds should prepare now for extensive new rules in mid october that promise to fundamentally change the 2 7 trillion industry fund managers and experts say. The reason behind money market fund reform. Money market funds mmfs are an important source of short term financing for financial institutions corporates and governments. At the peak of the 2008 financial crisis the reserve primary fund a large new york based fund manager was forced to reduce the net asset value nav.

Money market funds and the new sec regulation catherine chen marco cipriani gabriele la spada philip mulder and neha shah on october 14 2016 amendments to securities and exchange commission sec rule 2a 7 which governs money market mutual funds mmfs went into effect. Investors probably don t think much about their money. Mas has announced a 125 million support package for the financial and fintech sectors to deal with the immediate challenges from covid 19. The new rules require a floating net asset value nav for institutional prime money market funds which allows the daily share prices of these funds to fluctuate along with changes in the market based value of fund assets and provide non government money market fund boards new tools liquidity fees and redemption gates to address runs.

According to the sec the new regulations were designed to provide structural and operational reforms to address risks of investor runs in money market funds while. Read ps18 17 pdf in january 2018 we consulted in cp18 4 on a package of amendments to our handbook to ensure that it is consistent with the eu mmf regulation and new fees schedules to enable us to recover the cost of authorising and supervising mmfs.