The European Securities and Markets Authority (ESMA) has published a letter it has received from the European Commission concerning the implementation of the Money Market Fund Regulation (MMF Regulation). In its letter the Commission confirms the view expressed by ESMA in its earlier public consultation that the use of the reverse distribution mechanism (RDM, often referred to as ‘share cancellation’ or ‘share destruction’) is a mechanism that is not compatible with the MMF Regulation.

View European Commission letter on Money Market Fund Regulation, 2 February 2018

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