The UK Financial Conduct Authority (FCA) has published a consultation paper setting out proposals to enhance the resilience of Money Market Funds (MMFs) based in the UK. It has been developed in close consultation with the Treasury and the Bank of England.
MMFs are a type of fund used routinely by investors to place money and have quick access to it when they need it. MMFs pool investors’ money and make low risk investments in high-quality short-term assets. MMFs are subject to regulation to ensure that they can redeem investors’ investment and return it to them as cash at short notice. Investments in MMFs are not guaranteed, however, usually MMF investors receive all or almost all of their investment back.
MMFs play an important role in the economy and investors…
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