On 2 October 2019, the International Organization of Securities Commissions (IOSCO) published two update reports on its peer reviews of the regulation of money market funds (MMFs) and of the implementation of incentive alignment recommendations for securitisation.
The reports summarises IOSCO’s sustained efforts to monitor implementation for MMFs and securitisation since it published its two peer reviews in September 2015. The reports describe progress by IOSCO members in Financial Stability Board jurisdictions in adopting legislation, regulation and other policies covering MMFs and securitisation, which are G20 priority reform areas.
The MMF report covers three topics: valuation, liquidity management and MMFs that offer a stable net asset value. IOSCO found that most jurisdictions have implemented the fair value approach for the valuation of MMF portfolios, but progress in liquidity management is less advanced and less even.
The securitisation report covers two topics: incentive alignment arrangements and disclosure requirements. IOSCO observed that, overall, progress remains mixed across participating jurisdictions in implementing the recommendations for incentive alignment for securitisation.
Both update reports take stock of new regulations yet to come into force or to be applied in various jurisdictions. IOSCO states that this is an indication that implementation of IOSCO’s recommendations may be more complete in future implementation monitoring exercises.