View more on these topics

ABI sets up deposit and treasury fund sector

The Association of British Insurers has created a new money market investment fund sector named the deposit and treasury sector.

The new sector will have stricter limits on the type of instruments funds can invest in and their maturity than the existing money market sector, which will continue to exist.

The new sector, available on November 1, follows an extensive consultation with the FSA which showed demand for a sector whose principal and overriding objective is the stability of capital.

The new deposit and treasury sector will therefore contain money market funds that are only allowed to invest in relatively simple instruments, such as time deposits or Government bonds.

All instruments held by funds in the new sector must be denominated in Sterling and have a maximum duration of 12 months.

ABI director of life and savings Maggie Craig says: “This move is good news for consumers. It will make it easier for people seeking stability during the current volatility. Whilst no fund is risk free, the new sector will only contain the simplest funds available.”

Recommended

Tøraasen moves to Thames River

Thames River Capital has appointed Trygve Tøraasen as a fund manager on its European equities team. He will manage the Thames River European fund alongside Carlos Moreno.

What triggers the MPAA?

Jim Grant – Senior Product Insight & Technical Support Analyst There’s sometimes confusion around what triggers the money purchase annual allowance. Find out what does and what doesn’t trigger the MPAA. The money purchase annual allowance (MPAA) is a reduced annual allowance that can apply to contributions to defined contribution (DC) schemes. The following table […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com