BEFORE 1 April 2002 it was possible for the local authorities that were responsible for managing pension funds (about 100 of 440) to invest any pension fund cash in money market funds (MMFs) but the same local authority could not use such funds for its general cash. This was clearly an anomalous situation and resulted from the different regulations applying to the two types of fund. The regulations for the general fund cash were written in the early 1970s, long before MMFs came into existence.
