Regulatory Alerts2021-12-02
Added · Updated
Recommendation of the European Systemic Risk Board on reform of money market funds
The European Systemic Risk Board recommends that the European Commission propose legislative changes to Regulation (EU) 2017/1131, requiring all low-volatility net asset value money market funds to adopt a fluctuating net asset value and repealing specific regulatory thresholds. It further proposes enhanced liquidity requirements for variable and low-volatility net asset value funds, mandating the use of liquidity management tools such as swing pricing or liquidity fees, and establishing a framework for Union-wide stress testing and data sharing among national competent authorities. The addressee must communicate actions taken in response to these recommendations by 31 December 2023.
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