End to Fee Rebating In Offshore Money Market Mutual Funds Approaches. Our latest issue of Money Fund Intelligence contained an article entitled "Online Trading Portals Expanding Into Europe." In it, we discussed the practice of fee rebating, which is prohibited in the U.S. but which is commonplace among Dublin-based "offshore" money market funds. Vince Tolve, director of trade & client management at SunGard Transaction Network (STN) Money Market Portal, which recently expanded into Europe, told us, "I think the market continues to embrace the traditional U.S.-style, stable NAV money market approach.... Obviously, the rebating is a challenge for intermediaries. But Sungard's fully-disclosed model helps support our clients in this environment." SunGard MD Dave Mishoe tells us that it's becoming more common for funds to sell the low-cost "institutional" class instead of negotiating deals for specific clients. Crane Data expects fee rebating to eventually be banned in the U.K. and Europe as regulators there begin considering adopting U.S.-style money fund regulations, which mandate that all shareholders be treated equally. Tolve adds, "We'd love to see more standardization."

Email This Article




Use a comma or a semicolon to separate

captcha image

Money Market News Archive

2024
March
February
January
2023
December
November
October
September
August
July
June
May
April
March
February
January
2022
December
November
October
September
August
July
June
May
April
March
February
January
2021
December
November
October
September
August
July
June
May
April
March
February
January
2020
December
November
October
September
August
July
June
May
April
March
February
January
2019
December
November
October
September
August
July
June
May
April
March
February
January
2018
December
November
October
September
August
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
May
April
March
February
January
2013
December
November
October
September
August
July
June
May
April
March
February
January
2012
December
November
October
September
August
July
June
May
April
March
February
January
2011
December
November
October
September
August
July
June
May
April
March
February
January
2010
December
November
October
September
August
July
June
May
April
March
February
January
2009
December
November
October
September
August
July
June
May
April
March
February
January
2008
December
November
October
September
August
July
June
May
April
March
February
January
2007
December
November
October
September
August
July
June
May
April
March
February
January
2006
December
November
October
September