DP22/1: Resilience of Money Market Funds

We’re asking for your views on how to strengthen the resilience of Money Market Funds.

Read the Discussion Paper (PDF)

We are launching a joint Discussion Paper (DP) with the Bank of England, and with the endorsement of the Treasury, on reforming Money Market Funds (MMFs). We’ve also published finalised guidance on the UK MMF Regulation.  

We want to get views on our development of MMF reform proposals.   

Who this is relevant to 

  • UK MMFs and their users 
  • non-UK MMFs that are marketed to UK investors  
  • and other participants in short-term funding markets 

Respond to this Discussion Paper

The period for commenting on this Discussion Paper is now closed.

What happens next 

The UK authorities will consider feedback in deciding whether to formally consult on one or more MMF reform proposals. 


MMFs are a type of open-ended investment fund. They’re seen as a low-risk investment that helps investors diversify their credit risk. They give investors a place to hold, rather than grow, their assets. 

In March 2020, financial markets reacted to the Covid pandemic with increased selling pressure, volatility and illiquidity. MMFs came under severe strain across major currencies, including in sterling, as investors quickly sought access to cash. There is concern amongst authorities that underlying vulnerabilities within MMFs and threats to financial stability remain. Financial Stability Board (FSB) members, including the UK, agreed to assess and address the vulnerabilities that MMFs pose in their country.