Money Market Fund Regulation - Gmf-V

Original Language Title: Geldmarktfondsverordnung – GMF-V

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262. Regulation of the financial market authority (FMA) to the criteria concerning the definition, designation, disclosure requirements, investor information and investment restrictions by money market funds and money market funds with a short maturity structure (money market fund regulation - GMF-V)

On the basis of § 70 5 Z 3 of the investment funds act 2011 - InvFG 2011, Federal Law Gazette I no. 77, is prescribed:

Field of application and designation

§ 1 organisms to the joint investment in transferable securities (UCITS), as well as alternative investment funds (AIF) pursuant to section 3 para 2 No. 31 lit. a InvFG 2011, which described as a "Money market fund" or "Money market funds with a short maturity structure" or marketed as such, are subject to this regulation. In the prospectus and in the customer information document (CCD) is to specify whether the Fund is a "money market fund" or a "money market funds with a short maturity structure".

Investor information

§ 2. A suitable information on the risk and return profile of a money market fund or a money market fund with a short maturity structure to provide, so that they may form an informed judgement about the specific risks associated with the investment strategy is the investors in the prospectus and in the KID.

Money market funds with a short maturity structure

§ 3 (1) a money market fund with a short maturity structure has as main investment objective the preservation of capital and aims to income in the amount of money market interest rates. These funds invest Z 14 InvFG in money market instruments pursuant to section 3 para 2 2011 as well as demand deposits or terminable deposits pursuant to § 72 InvFG of 2011 AIF pursuant to section 3 para 2 No. 31 lit. a InvFG 2011 have to ensure that the evaluation of the liquidity of the Fund assets and the valuation of Fund assets follow equivalent rules.

(2) it is to ensure that high-quality money market instruments are. This is to determine by the management company in particular by the following criteria: a) the credit quality of the money market instrument;

(b) the nature of the investment class;

c) for structured financial products: the operational risk and the counterparty risk that are intrinsic to the business processes in structured financial products, and d) the liquidity profile.

The credit quality of a money market instrument is not of high quality, if not by all rating agencies, which have rated this instrument, with one of the two highest short-term credit ratings has been evaluated and these ratings No. 1060/2009 on credit rating agencies can be used under article 4 of Regulation (EC). No rating is available, an equivalent quality is given, when the management company evaluates them using internal rating procedures.

(3) the disposition is to restrict to securities with a residual maturity of up to 397 days until the legal redemption date.

(4) it shall be a daily calculation of net asset value and the issue and redemption price as well as a daily issue and redemption of unit certificates.

(5) it is to ensure that the Fund's assets a weighted average maturity (weighted average maturity, WAM) of not more than 60 days and a weighted average remaining maturity (weighted average life, whale) has no more than 120 days.

(a) the weighted average maturity (WAM) is the weighted average time to maturity of money market instruments that are contained in an investment fund, under the assumption that this maturity in a financial instrument with a variable interest rate is the amount of time until the next adjustment to the money market interest rate and not those to the capital repayment.

(b) the weighted average remaining term (whale) is the weighted average legal maturity in a mutual fund money market instruments up to the capital repayment date.

(6) a put option is a financial instrument, so the date of exercise of the option can be used only instead of the capital repayment time, if the following conditions at any time are met: a) the put option may be; fully exercised by the management company at the time of exercise

(b) the exercise price of the put option is close to the expected value of the financial instrument to the next date of the exercise;

(c) the investment strategy of the Fund implies a high probability that the put option is exercised on the next date of the exercise.

(7) for the calculation of weighted average maturity (WAM) and weighted average legal maturity (WAL), the influence of derivative financial instruments, deposits and puttable deposits, as well as more efficient portfolio management techniques as described in sections 83 and 84 are to take into account the InvFG 2011.

(8) a direct or indirect investment in shares or in raw materials, including derivative products, is prohibited. Derivatives may be used only with regard to the money market fund strategy, only to hedge the currency risk currency derivatives. Investments in securities, which are not denominated in the currency of the Fund, are allowed if the currency risk entirely is secured.

(9) the investment in other investment funds shall be limited to the investment in money market funds with a short maturity structure.

Money market funds

4. (1) money market funds have to comply with article 3, paragraph 1, 2, 4 and 6 to 8. Violates article 3 par. 2 can hold a money market fund but also bonds referred to in paragraph 2, at least an "investment grade" rating have.

(2) bonds within the meaning of this provision are money market instruments which the European Union or the European Investment Bank issued or guaranteed by a central Government, regional or local authority or Central Bank of a Member State, the European Central Bank.

(3) the disposition is to limit, including the period until the next interest rate adjustment up to 397 days exceed securities with a residual maturity of up to two years until legal capital redemption. Securities must be based on a money market rate or a recognized money market index with a variable interest rate.

(4) it is to ensure that the Fund's assets has a weighted average maturity (WAM) of not more than six months and a weighted average remaining term in legal (WAL) of not more than twelve months.

(5) the investment in other investment funds is in terms of this provision to limit on money market funds with a short maturity structure in accordance with § 3 or money market funds.

Entry into force

§ 5. This Regulation shall into force on September 1, 2011. This regulation to comply with have money market funds and money market funds with a short maturity structure, which are granted after September 1, 2011. Money market funds, which have been approved before 1 September 2011, have to respect article 3 or article 4 for investments carried out from 1st September 2011; from this date section 2, for

 

Investments that have been made before September 1, have to meet section 3 or section 4 to 31 December 2011.

Ettl Pribil