On 7th March, 2013 the MFSA published revisions to Appendix 1 to the Investment Services Rules for Professional Investor Funds (the “PIF Rules”) and Appendix 7 to the Investment Services Rules for Retail Collective Investment Schemes to enshrine the provisions of CESR’s Guidelines on a Common Definition of European Money Market Funds (CESR/10-049) (the “CESR Guidelines”).

Although already observed in practice, the amendments formally implement the CESR Guidelines in the from of a rule-set for Money Market Funds licensed as Professional Investor Funds (“PIFs”) and ossify the definition of Money Market Fund as a fund with the primary objective of maintaining the principal investment of the fund and aim[ing] to provide a return in line with money market rates.

A copy of the revised PIF Rules can be downloaded here. The revised PIF Rules apply to all PIFs labelled or marketed as money market funds which were created on or after the 1st July, 2011 (the date when the CESR Guidelines entered into force).

If you would like further information on the revised PIF Rules or the CESR Guidelines and how these will impact you, please contact any of the members of our Investment Management & Funds Group.