Section 2: Money market Retail Investor AIFs

1. The Retail Investor AIF must indicate in its prospectus whether it is a Short-Term Money Market Fund or a Money Market Fund. It must also include a risk warning drawing attention to the difference between the nature of a deposit and the nature of an investment in a money market fund with particular reference to the risk that the principal invested in a money market fund is capable of fluctuation.

2. The Retail Investor AIF must provide appropriate information to unitholders on the risk and reward profile of the fund so as to enable unitholders identify any specific risks linked to the investment strategy of the money market fund.

(a) In the case of Money Market Funds this must take account of the longer WAM and WAL.

(b) In the case of all money market funds this must take account, where relevant, of investment in new asset classes, financial instruments or investment strategies with unusual risk and reward profiles.

i. Short-Term Money Market Funds
ii. Money Market Funds
iii. Short-Term Money Market Funds - valuation on the basis of amortised cost
iv. European Central Bank reporting requirements