Moody's: Brexit would be 'non-event' for money market funds

UCITS passport 'critical' for EU distribution

A Brexit would be a "non-event" for the $258bn of assets held in money market funds in the UK, according to a Moody's survey, with only 18% of groups saying they would need to strengthen their distribution capabilities in Europe as a result.

The ratings agency surveyed 12 EU-based asset management companies, responsible for $550bn in money market fund assets, on the impact a potential Brexit would have on their businesses. Almost 90% said the UK leaving the European Union would not prompt a relocation of their management functions, nor would it prompt major changes for the $258bn money market fund assets managed in the UK. Over half of wealth managers say Brexit would negatively impact FM industry However, the respondents said it will be "critical" for asset managers to maintain the UCITS passport, as nearly half (48%)...