Canadian securities regulators have launched a review of money market funds to assess whether they are exposed to impaired or illiquid assets as a result of current financial market turmoil. The Canadian Securities Administrators (CSA), an umbrella group of Canada's provincial securities commissions, and the Investment Industry Regulatory Organization of Canada (IIROC), which oversees brokerage firms, jointly issued a statement yesterday listing their responses to development in financial markets, including a "fact-finding review" of money market funds. The CSA said it is distributing questionnaires to money market fund operators and doing selected on-site reviews of some firms. Some U.S. money market funds have been hit with losses and redemptions because they held commercial paper of troubled financial firms such as Lehman Brothers.
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