The Autorité des marchés financiers (AMF) on Thursday published a notice setting out the details of a continuous disclosure review that the Quebec securities regulator carried out in order to assess the compliance of fund managers regarding net asset value calculations for money market funds (MMFs).

In particular, the review examined whether MMFs comply with the fair value requirement and have appropriate written policies and procedures in place for determining the fair value of portfolio assets.

“During our review, we noted a general lack of completeness in the written policies and procedures for determining the fair value of portfolio assets,” the AMF says in the notice, detailing the deficiencies that it uncovered.

The AMF expects funds to “review their policies and procedures to ensure that the carrying value reflected in the NAV is representative of the fair value of a portfolio asset,” the notice says.

If the fair value is provided by a third party, fund managers should ensure that controls are in place to assess the reliability of this external pricing, the notice adds.