After a series of high-profile losses in its money market fund sector, the Association of British Insurers has created the Deposit and Treasury sector, which will provide tighter controls on permitted investments.

In February, Standard Life had to pay £100 million to investors after its Sterling cash fund lost 5% of its value by investing in asset-backed securities. The Threadneedle UK Money Securities Fund lost more than 10% in 4Q08 due to its investments in mortgage-backed securities.

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