Regulatory AlertsCP23/28: Updating the regime for Money Market Funds
The Financial Conduct Authority, in cooperation with the Bank of England and HM Treasury, proposes enhanced resilience rules for UK Money Market Funds to mitigate financial stability risks exposed during recent market stresses. The consultation seeks to increase minimum liquid asset requirements to 15% daily and 50% weekly levels and delinks stable NAV funds from mandatory liquidity fee or gate triggers to improve buffer usability. These measures aim to reduce reliance on central bank intervention while maintaining the utility of MMFs as critical short-term cash management vehicles for institutional investors.
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