PS18/17: The European Money Market Funds (MMF) Regulation

Open consultation: CP18/4
Consultation closed
Policy statement: PS18/17 and final rules published

In this Policy Statement, we respond to feedback arising from CP18/4 and publish final rules amending our Handbook to ensure consistency with the requirements of the EU Money Market Funds (MMF) Regulation. We also apply fee schedules to enable us to recover the cost of authorising and supervising money market funds under the Regulation.

Read PS18/17 (PDF)

In January 2018, we consulted in CP18/4 on a package of amendments to our Handbook, to ensure that it is consistent with the EU MMF Regulation, and new fees schedules to enable us to recover the cost of authorising and supervising MMFs.

This Policy Statement responds to the feedback received and publishes the final rules.

Who this applies to

This Policy Statement will be of interest to all managers, depositaries and distributors of, and investors in, MMFs.

Next steps

The rules (set out in Appendix 1 of PS18/17) will come into force on 20 July 2018.

From 21 July 2018, new MMFs will need to be authorised as an MMF by their National Competent Authority (NCA).

Existing funds that are already branded as MMFs and operating under the regime set out in European Securities and Markets Authority (ESMA) guidance, and any existing funds that are substantially similar to MMFs as defined in the MMF Regulation, will have to apply for authorisation under the new Regulation by 21 January 2019.

We have updated our application forms to account for the introduction of the MMF Regulation. 

Most existing MMFs operate under the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive, but some operate under the Alternative Investment Fund Managers Directive (AIFMD). The MMFR will not amend either Directive, and their managers will need to remain authorised under either one of them.