July 11, 2018

FCA published the policy statement PS18/17, which sets out final rules amending the FCA Handbook to ensure that it is consistent with the requirements of the EU Money Market Funds (MMF) Regulation. PS18/17 also contains the response of FCA to the feedback received to the consultation paper CP18/4, which was published in January 2018. The consultation closed on March 23, 2018. The rules, which have been set out in Appendix 1 of PS18/17, will come into force on July 20, 2018.

A new MMF will need to be authorized as an MMF by its national competent authority from July 21, 2018. Existing funds, which are already branded as MMFs and operating under the regime set out in ESMA guidance, along with any existing funds that are substantially similar to MMFs as defined in the MMF Regulation, will have to apply for authorization under the new regulation by January 21, 2019. FCA received five substantive responses to the CP18/4, mainly from industry bodies. Respondents generally agreed with the overall approach of making changes to the Handbook. Chapter 2 of PS18/17 summarizes the feedback and sets out response, including where FCA considers that changes to the original proposals are necessary.

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Effective Date: July 20, 2018

Keywords: Europe, UK, Banking, Securities, MMF Regulation, PS18/17, FCA