The European Commission is consulting on potential changes to the UCITS framework with improvements to the regulation of money market funds, short-termism and harmonising the investment industry's approach to fund redemptions among the items on the agenda.
It will also consult the industry on the use of over-the-counter derivatives and fund managers' employment of efficient portfolio management (EPM) as well as liquidity management rules. On money market funds, the Commission wants to explore options to maintain investor confidence in the products, their role as a liquidity product and their engagement in the securities lending and repo markets. The Commission said the use of EPM techniques is "widespread" and essential for generating additional revenue for investors. "EPM includes securities lending and repurchase transactions as we...
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