The Financial Conduct Authority (FCA) has published a Policy Statement 18/17 (PS18/17):
The European Money Market Funds (EU MMF) Regulation. It sets out final rules and its responses to the feedback it received to Consultation Paper 18/17.
The EU MMF regulation came into force in every EU member state on 21st July 2017, and took effect on 21st July 2018. From that date, 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 European Securities and Markets Authority (ESMA) guidance, and those that are substantially similar to MMFs as defined in the MMF Regulation, will have to apply by 21st January 2019 to be authorised under the new regulation.
The MMF Regulation is directly applicable under EU law, and does not need to be implemented by individual member states. The FCA has identified provisions in its Handbook, principally in the Collective Investment Schemes sourcebook (COLL), that need to be amended, deleted or disapplied to MMFs to avoid conflicting with the MMF Regulation. The FCA will charge fees to recover the costs of authorising and supervising MMFs under the regulation.
The FCA has updated its application forms to account for the introduction of the EU MMF regulation. Existing MMFs that operate under UCITIS Directive or under AIFMD will remain authorised under either one of them as the EU MMF regulation will not amend either Directive.
To read more, please follow this link: https://www.fca.org.uk/publication/policy/ps18-17.pdf
Please Note: This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues or transactions.