EU money market funds face 'share destruction' crackdown

Warnings from CSSF and CBI

Mike Sheen
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Central Bank of Ireland, Dublin
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Central Bank of Ireland, Dublin

Regulators from key EU fund domiciles Luxembourg and Ireland have warned managers of money market funds that they must stop using a mechanism which allows them to cancel shares, despite the asset management industry lobbying against the move.

The Central Bank of Ireland (CBI) has written to the managers of the money market funds domiciled in the country requesting plans to unwind "share destruction", which enables the strategies to maintain...

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