Proposals should ease access to money markets
UK – Nick Raynsford, the government minister at the department for transport, local authorities and the regions, is to present parliament with a draft statutory proposal to change the law to allow local authorities to invest in money market funds, a move that could be worth as much as £10bn (€16.2bn).
If approved, the proposal could see the reforms come into force before the start of the financial year in April and means that local authorities will have greater autonomy in managing their finances as well as increased levels of liquidity.
The move is welcomed by JP Morgan Fleming Asset Management (JP Morgan Fleming), which manages more than £14bn (€22.7bn) in liquidity funds. “Not only do these funds offer the benefits of enhanced security and instant liquidity, but also the potential to earn a return that outstrips interest available on low-yielding deposit accounts,” says Helena Vukovic, vice president of UK institutional sales at JP Morgan Fleming.