French Monetary and Financial Code
In forceThe money market instruments referred to in 2° of I of
Article L. 214-20meet the following conditions:
1° They meet at least one of the following criteria:
a) They have an issue maturity of up to 397 days ;
b) They have a residual maturity of up to 397 days;
c) Their yield is adjusted regularly, at least every 397 days, in accordance with money market conditions;
d) Their risk profile, particularly with regard to credit risk and interest rate risk, corresponds to that of instruments with a maturity or residual maturity in line with those mentioned in a and b respectively, or whose yield is adjusted in line with those mentioned in c.
2° They may be sold at limited cost within a short and appropriate period, taking into account the obligation of the UCITS to repurchase or redeem its units or shares at the request of any unitholder or shareholder.
3° there are accurate and reliable valuation systems which meet the following criteria:
a) They enable the UCITS to calculate a net asset value corresponding to the value at which the financial instrument held in the portfolio could be exchanged between knowledgeable, willing parties in an arm's length transaction;
b) They are based either on market data or on valuation models, including systems based on amortised cost. These models must not lead to significant deviations from the market value of the instrument.
The conditions mentioned in 2° and 3° are deemed to be met for money market instruments falling under 1° to 3° of I of article R. 214-11 unless the UCITS has information leading to different conclusions.
