Money Market Funds Regulation—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Money Market Funds Regulation—essentials
  • What is the MMF Regulation?
  • What is an MMF?
  • What are the risks associated with MMFs?
  • Authorisation of MMFs operating in the EU
  • Types of constant net asset value MMFs
  • Investment policies of MMFs
  • Eligible assets and diversification requirements
  • Credit quality of MMF investments
  • Valuation and transparency for MMFs
  • More...

Money Market Funds Regulation—essentials

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

What is the MMF Regulation?

Following its work on shadow banking and investment funds, the European Commission identified a number of concerns about money market funds (MMFs). In response, the European Commission ('Commission') published the original proposal for a Regulation on Money Market Funds (MMF Regulation) in September 2013, following recommendations by the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB). The MMF Regulation was published in the Official Journal of the EU on 30 June 2017, and applies to new MMFs from 21 July 2018 and to existing MMFs from 21 January 2019. The MMF Regulation is designed to increase investor protection and to limit the risk that money market funds (MMFs) pose to the integrity and stability of financial markets.

The MMF Regulation applies to MMFs established, managed or marketed in the EU, whether they are authorised as undertakings for the collective investment in transferable

Popular documents