Money Market Fund Regulation - Gmf-V

Original Language Title: Geldmarktfondsverordnung – GMF-V

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262. Regulation of the Financial Markets Authority (FMA) laying down the criteria relating to the definition, designation, publication obligations, investor information and investment restrictions of money market funds and money market funds with short Maturity Structure (Money Market Fund Regulation-GMF-V)

Due to § 70 (5) Z 3 of the Investment Fund Act 2011-InvFG 2011, BGBl. I n ° 77, shall be assigned:

Scope and designation

§ 1. Collective investment undertakings in transferable securities (UCITS) and alternative investment funds (AIF) pursuant to § 3 (2) (1) (31) (1) (lit). a InvFG 2011, which is referred to as the "money market fund" or "money market fund with a short maturity structure" or is marketed as such, is subject to this regulation. The prospectus and the customer information document (KID) shall indicate whether the investment fund is a "money market fund" or a "money market fund with a short maturity structure".

Investor Information

§ 2. An appropriate information shall be made available to investors in the prospectus and in the KID on the risk and return profile of a money market fund or a short-term money market fund, in order to ensure that they are informed of the risk and yield profile of a money market fund or a money market fund with a short maturity structure. Investment strategy related specific risks can form a well-founded judgment.

Money market fund with a short maturity structure

§ 3. (1) A money market fund with a short maturity structure has as its main objective the holding of capital and seeks income in the amount of the money market interest rates. These investment funds have been invested in money market instruments in accordance with § 3 paragraph 2 Z 14 InvFG 2011 as well as in sight deposits or preventable deposits pursuant to § 72 InvFG 2011. AIF according to § 3 paragraph 2 Z 31 lit. a InvFG 2011 have to ensure that the valuation of the liquidity of the fund assets as well as the valuation of the fund's assets are carried out according to equivalent rules.

(2) It is necessary to ensure that the money market instruments are of high quality. This shall be determined by the management company, in particular on the basis of the following criteria:

a)

The credit quality of the money market instrument;

b)

the nature of the assessment class;

c)

for structured financial products: the operational risk and the counterparty risk immanent to the business processes with structured financial products; and

d)

the liquidity profile.

The credit quality of a money market instrument is not of high quality if it has not been rated by all rating agencies that have rated this instrument with one of the two highest short-term credit ratings, and these ratings by type. 4 of Regulation (EC) No 1060/2009 on credit rating agencies. In the absence of a rating, an equivalent quality shall be given if the management company assesses the same by applying internal rating procedures.

(3) The apportionment shall be based on securities with a residual maturity of up to 397 days up to the legal repayment date ,

(4) There shall be a daily calculation of the net asset value and the output and withdrawal price as well as a daily issue and withdrawal of shares.

(5) It is necessary to ensure that the fund assets are weighted average maturity (WAM) of not more than 60 days and a weighted average life (WAL) of no more than 120 days.

a)

Weighted average maturity (WAM) is the weighted average time to maturity of the money market instruments included in an investment fund, assuming that this maturity in a financial instrument with a variable Interest rate is the period until the next adjustment to the money market interest rate, and not the period until the capital redemption.

b)

The weighted average residual maturity (WAL) is the weighted average legal residual maturity of the money market instruments of an investment fund up to the date of the capital redemption.

(6) Where a sales option is embedded in a financial instrument, the day of exercise of the option may be used instead of the capital repayment date only if the following conditions are met at all times:

a)

The sales option may be fully exercised by the management company at the time of exercise;

b)

the exercise price of the sales option is close to the expected value of the financial instrument at the next exercise date;

c)

the investment fund's investment strategy implies a high probability that the sales option will be exercised at the next exercise date.

(7) For the calculation of weighted average maturity (WAM) and weighted average legal residual maturity (WAL), the influence of derivative financial instruments, sight deposits and preventable deposits as well as more efficient Portfolio management techniques according to § § 83 and 84 InvFG 2011 should be taken into consideration.

(8) A direct or indirect investment in shares or in raw materials, including through derivative products, is inadmissible. Derivative products may only be used in respect of the money market fund strategy, currency derivatives only to hedge the currency risk. Investments in securities that are not denominated in the fund shall be permitted if the currency risk is fully hedged.

(9) The investment in other investment funds shall be based on the assessment of To limit the short-term money market fund.

Money Market Fund

§ 4. (1) Money market funds shall comply with Article 3 (1), (2), (4) and (6) to (8). However, contrary to Section 3 (2), a money market fund may also hold bonds in accordance with paragraph 2, which have at least an "investment grade" rating.

(2) Bonds within the meaning of this provision shall be money market instruments issued by a central government, regional or local authority, or the central bank of a Member State, the European Central Bank, the European Union or the European Investment Bank shall be issued or guaranteed.

(3) The apportionment shall be limited to securities with a residual maturity of up to two years until the legal capital redemption, whereby the period until the next interest rate adjustment may not exceed 397 days. Variable-interest securities must be based on a money market rate or a recognised money market index.

(4) It is necessary to ensure that the fund assets have a weighted average maturity (WAM) of not more than six months and a weighted average legal residual maturity (WAL) of not more than twelve months.

(5) The investment in other investment funds shall be limited to money market funds with a short maturity structure in accordance with § 3 or money market funds within the meaning of this provision.

entry into force

§ 5. This Regulation shall enter into force on 1 September 2011. Money market funds and money market funds with a short maturity structure, which will be approved as of 1 September 2011, have to comply with this Regulation. Money-market funds approved before 1 September 2011 shall comply with § 2, § 3 or § 4 for apportionment, which will be made as of 1 September 2011; for

They have to comply with § 3 or § 4 to 31 December 2011, which were carried out before 1 September.

Ettl Pribil