1.1 This Policy Statement (PS) sets out our response to the feedback we received to our Consultation Paper CP18/4. In the CP, we proposed a series of Handbook amendments and new fees schedules to reflect the coming into force of the European Money Market Funds (MMF) Regulation (‘the MMF Regulation’).
1.2 An MMF is a fund that invests in short-term debt, such as treasury bills, commercial paper and certificates of deposit. MMFs are an important source of short-term financing for financial institutions, corporates and governments. On the demand side, they offer a short-term cash management tool generally used by corporations to invest their excess cash over a short timeframe.
1.3 The MMF Regulation forms part of the European Union’s (EU) response to the 2008 global financial crisis. It applies a common framework of rules to MMFs and any substantially similar funds within the European Economic Area (EEA), and subjects them to authorisation and supervision against those…