The chairman of the Institutional Money Market Fund Association’s (IMMFA) AGM, Donald Aiken, said at a recent awards dinner that the association’s lobbying efforts and organized codes have helped bolster the funds of its members.
“There is no doubt in boxing terms that we have been consistently punching above our weight,” Aiken said. “I do not believe it is a coincidence that since IMMFA was formed in 2000, we have seen a five-fold increase in funds under management by members rising from $50 billion to over $260 billion now.”
Aiken commented on the fact that the 33-member organization had succeeded in establishing a code of practice and providing product information to investors, it had focused on lobbying government and regulators and raising awareness of money market funds in Europe.
He went on to say that one of the most important pieces of lobbying had been on the EU definition of eligible assets and the role of money market instruments, saying that if IMMFA had not successfully lobbied CESR, the Committee of European Securities Regulators, the unintended consequence would have been that money market funds would have had to close.
“I guess the starting point is more of the same – that is: lobbying, lobbying and lobbying of regulators and government to recognise and allow for the different characteristics of our product and to ensure that the industry is well positioned to maximise the exciting growth opportunities that we believe lie ahead,” Aiken added.