IOSCO Report Confirms Progress Made by Jurisdictions in Implementing MMF Policies

IOSCO published a report that summarizes the progress made by 31 jurisdictions in adopting legislation, regulation and other policies in relation to money market funds ("MMFs").

The report was undertaken in response to a September 2013 request from G20 Leaders in St. Petersburg that IOSCO conduct a peer review on progress regarding MMF regulatory reforms. The report covers the implementation progress for the eight reform areas that were covered previously in IOSCO's 2012 report, Policy Recommendations for Money Market Funds.

Twenty-three Financial Stability Board ("FSB") members representing almost 83% of MMF markets worldwide, and seven non-FSB members representing almost 15% of MMF markets worldwide, provided the responses on which the report is based. The report includes the following important findings:

• Progress was made in introducing implementation measures across the eight reform areas.
• Implementation progress varied between jurisdictions and reform areas.
• The global MMF market is dominated by five jurisdictions - the U.S., France, Luxembourg, Ireland and China - that account for almost 90% of global assets under management in MMFs.
• For jurisdictions with smaller MMF markets, implementation progress was less advanced: only four other participating jurisdictions reported final implementation measures in all reform areas.
• Self-assessments from the jurisdictions included in the report indicated most either have measures in force in all reform areas or are progressing toward that outcome.