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  3. Point in time
    2018-10-03

designated money market fund

56(in BIPRU 12 and BSOCS59) a collective investment scheme authorised under the UCITS Directive or which is subject to supervision and, if applicable, authorised by an authority under the national law of an EEA State, and which satisfies the following conditions:

  1. (a) its primary investment objective must be to maintain the net asset value of the undertaking either constant at par (net of earnings), or at the value of the investors' initial capital plus earnings;
  2. (b) it must, with a view to achieving that primary investment objective, invest exclusively in either or both assets (i) of the kind mentioned in BIPRU 12.7.2R(1) and (2), or (ii) sight deposits with credit institutions that are at all times fully secured against assets of the kind mentioned in BIPRU 12.7.2R(1) and (2);
  3. (c) it must, for the purpose of condition (b), only count assets with a maturity or residual maturity of no more than 397 days, or regular yield adjustments consistent with such a maturity, and with a weighted average maturity of no more than 60 days;
  4. (d) it must, for the purpose of condition (b), ensure that if it invests in sight deposits with credit institutions of the kind mentioned in (b)(ii), no more than 20% of those deposits are held with any one body; and
  5. (e) it must provide liquidity through same day settlement in respect of any request for redemption made at or before 66120066 hours GMT or, as the case may be, BST.