Mon, May 20, 2024

The official Financial Regulation Journal of SAIFM

IOSCO publishes updates to peer reviews of regulation of MMFs and securitization

The Board of the International Organization of Securities Commissions (IOSCO) today published two update reports entitled Update to the IOSCO Peer Review of Regulation of Money Market Funds and Update to the IOSCO Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation.

These reports summarize IOSCO’s ongoing efforts to monitor implementation of reforms for money market funds (MMF) and securitization since IOSCO published its two peer reviews in September 2015. The reports describe progress by IOSCO members in FSB jurisdictions in adopting legislation, regulation and other policies covering MMF and securitization, which are G20 priority reform areas. The reports set out the background, methodology and findings that were reported to the G20 Leaders in 2018 and 2019 and were included in the Annual Reports on Implementation and Effects of the G20 Financial Regulatory Reforms.

The MMF report covers three topics (valuation, liquidity management and MMFs that offer a stable NAV) and finds that most jurisdictions have implemented the fair value approach for the valuationof MMF portfolios, but progress in liquidity management is less advanced and less even. The securitization report covers two topics (incentive alignment arrangements and disclosure requirements) and finds that, overall, progress remains mixed across participating jurisdictions in implementing the recommendations for incentive alignment for securitization.

The update reports also take note of new regulations yet to come into force or to be applied in various jurisdictions – an indication that implementation of IOSCO’s recommendations may be more complete in future implementation monitoring exercises.

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