French bank CACEIS has designed a new setup to offer its clients a fund administration and depositary control solution adapted to the money market funds (MMF) regulation.
Following the launch of the new setup, CACEIS helped Ostrum Asset Management, a €265 billion manager for institutional and retail investors, to bring its money market funds into compliance with the regulation.
The regulation requires changes at various levels including the valuation methods of financial instruments held in money market funds, regulatory and contractual ratios, and financial statements.
“CACEIS has enabled all of our money market funds to comply with the new constraints well before the deadline of 21 January 2019,” said Simon Logeay, head of market risk management, Ostrum Asset Management.
“For the sake of consistency, we have chosen to apply mark-to-market valuation to all of our funds’s monetary financial instruments.”
CACIES acts as the main custodian and administrator for many of the money market funds in the French market.
“CACEIS has ensured its clients a solid and automated solution that allows them to migrate at their convenience, while complying with the regulatory schedule,” added Ramy El Houayek, group head of fund administration, CACEIS.