On 20 July 2018, the CSSF issued a press release in order to remind that Money Market Fund Regulation (EU) 2017/1131 ("MMFR" or "Regulation") will apply from 21 July 2018 [Please see previous Fund News article].
Scope of the MMF Regulation
The CSSF would like to highlight that the regulation applies to UCITS and AIFS established, managed or marketed in the EU that:
- invest in short-term assets and
- have distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment.
A fund that would have characteristics substantially similar to those will require authorisation under the MMFR.
The CSSF also highlights that the definition of MMF under the MMFR includes in the scope of application of MMFR funds other than the ones in scope of the CESR Guidelines on a common definition of European MMF (CESR/10-049), amended by the ESMA opinion of 22 August 2014 (ESMA/2014/1103) and that asset managers must assess their product range to detect if any new fund falls into the scope of the MMFR.
Authorisation of MMFs under the MMFR
In Luxembourg, the CSSF is the competent authority in accordance with the MMFR to grant authorisation as MMF to the UCITS, AIFs and certain non-EU AIFs. A dedicated form is available on the CSSF website for the applicant to submit a complete file to the CSSF.
As of 21 July 2018,
- New MMFs have to be authorised as MMFs fulfilling all the requirements of the Regulation;
- Existing MMFs (i.e. those exist before 21 July 2018) will have a transitional period until 21 January 2019 to submit an application to the CSSF to demonstrate their compliance.
The CSSF finally draws the attention to the fact that MMFs may only be authorised when they are managed by an AIFM that is himself authorised by the CSSF to manage MMFs that are AIFs. AIFMs must therefore obtain authorisation to manage MMFs prior to requesting any authorisation for MMFs that are AIFs.
The press release is available at the following link.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.