IDEAS home Printed from https://ideas.repec.org/a/bpj/eucflr/v24y2016i13p517-545n3.html
   My bibliography  Save this article

A Hat That Fits on Different Heads? The Proposed Regulation on Money Market Funds and the System of EU Investment Law

Author

Listed:
  • Rehahn Johannes

    (LL.M. (London School of Economics), LL.M.oec. (Martin Luther University Halle-Wittenberg); Associate, Linklaters LLP, Frankfurt (Main).United Kingdom of Great Britain and Northern Ireland)

Abstract

Money Market Funds are an attractive form of investment and important providers of liquidity to various economic actors but proved to be vulnerable to investor runs, thereby posing serious risks to the financial system as a whole. In the framework of the discussion on “shadow banking”, the Financial Stability Board and the International Organization of Securities Commissions acknowledged the need for tighter regulation of Money Market Funds and made proposals for legislative measures whose transposition in EU Investment Law is complicated by the fact that parts of the European industry are subject to the UCITS Directive, while other parts are designated as belonging to the world of alternative investments. The Regulation on Money Market Funds proposed by the European Commission in 2013 is intended to enhance the resistibility of the sector and to ensure financial stability by establishing striact rules regarding the operation of both types of Money Market Funds. The approach chosen – bringing together what has been carefully divided – will increase the complexity and further undermine the consistency of EU Investment Law. Moreover, important elements of the proposal are not in line with both the expectations of the international standard setters and the new emphasis on capital market financing in the EU, and do not appear capable of making European Money Market Funds more crisis-proof.

Suggested Citation

  • Rehahn Johannes, 2016. "A Hat That Fits on Different Heads? The Proposed Regulation on Money Market Funds and the System of EU Investment Law," European Company and Financial Law Review, De Gruyter, vol. 13(3), pages 517-545, October.
    • Handle: RePEc:bpj:eucflr:v:24:y:2016:i:13:p:517-545:n:3
    DOI: 10.1515/ecfr-2016-5003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/ecfr-2016-5003
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/ecfr-2016-5003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:eucflr:v:24:y:2016:i:13:p:517-545:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.