Many experts have argued, that trying to model European legislation on MMFs on that in the US, would be a mistake. Still, it needed to be updated. The financial crisis had demonstrated that MMFs were vulnerable to liquidity problems at tough times. The update would set a framework within which MMFs could operate competitively. It would carry suitable protection for investors during financial crises and ensure ongoing flexible servicing of the short term financial needs of European business. Prudential requirements needed to be strengthened without burdening unduly the financial services on offer in the European economy. The increasing variety by which such services could be packaged needed also to be taken into account. It balances the need for regulation with the need to enhance the competitivity of financial services. The latter must remain a priority, if the overall aim of stimulating more new investment in Europe is going to be achieved. Equally, there will be a need in coming years to keep a watch on developments worldwide in money market and related funds sectors. Given globalisation, European legislation cannot afford to lag on what is happening elsewhere, in both prudential and competitive terms.