| IMMFA's code of practice puts money fund safety first, yield next |
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| 12/02/2003 | |
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The Institutional Money Market Fund Association (IMMFA) has issued a Code of Practice for managers of triple-A money market funds, domiciled offshore. The trade body, which represents the $130bn offshore money fund industry, said the Code had been introduced to ensure that IMMFA members were committed to a set of strict criteria, underpinning the objective of capital security for the fund's assets. Since IMMFA's inception in June 2000, the association under the chairmanship of Gartmore's David Hynes and now JPMorgan's Peter Knight has endeavored to set a best practice benchmark in the absence of any formal regulation from the Financial Services Authority (FSA). The standards set out in the Code focus on IMMFA's objectives: Preserving principal and maintaining liquidity in the funds at all costs. "Yield, whilst important, is a secondary consideration," said IMMFA. A new technical committee has been charged with the task of keeping the Code relevant, as new members join (or leave) and the market for money funds changes. US-data manager iMoneyNet has the job of making sure members' data is accurate, which is then published weekly in the IMMFA Money Fund Report. IMMFA's Peter Knight, said: "It is very encouraging that IMMFA members, of whom there are 27 including most major providers of triple-A rated money market funds, have been able to set aside their competitive differences and agree a set of standards aimed purely at improving the transparency and comparability of the product." This e-mail address is being protected from spam bots, you need JavaScript enabled to view it For the Code of Practice in full, please click on the attached pdf  |
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