Brussels, 04/03/2014 (Agence Europe) - The head of the Systemic Risk Board (SRB) told the European Parliament's economic and monetary affairs committee on Monday 3 March that forcing Constant New Assets Value Funds (CNAV) to have capital buffers “would be a good step forward”.
Draghi said that the European Commission's proposal of last September had not been discussed at the SRB, but the SRB had already called for CNAV to be turned into VNAV (Variable Net Asset Value Funds). He said that CNAV money market funds issuing constant returns were a potential threat to financial stability. The 3% threshold to be applied to them “is all but meaningless. In other words, a meaningful threshold is considered quite expensive by industry”. Draghi was speaking in response to question raised by Saïd El Kadhraoui (S&D, Belgium), the EP's rapporteur on this issue, who regretted the political resistance to the draft regulation (EUROPE 11008). (EL)