FCA updates on MMF reform

The FCA says responses to consultation on money market fund reforms generally supported the proposed changes but several respondents were concerned about the proposed increase in MMF liquidity levels. As a result, the BoE and FCA have collected more data, and the FCA will introduce a new rule requiring all MMFs to hold sufficient liquidity for adequate resilience.

The Government now says it will introduce legislation to make the necessary legislative changes by the end of the year, and so the FCA will make its rules to that timescale.