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 a constant net asset value while dealing with negative interest rates, according to the FT. Irish regulator eyes more flexible stance in potential boost for active ETFs Meanwhile, Luxembourg's Commission de Surveillance du Secteur Financier (CSSF) has also told the managers of such vehicles that they must cease the use of share cancellation mechanisms. The crackdown comes ahead of new...
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