CSSF And CBI Joint Statement On The Treatment Of MMF Share Cancellation

On 11 January 2019, the CSSF issued a press release (19/03) to communicate its joint statement, together with the Central Bank of Ireland (CBI) on the treatment of share cancellation under the money market fund regulation 2017/1131 ("MMFR" or "Regulation"). This statement makes it clear that the share cancellation is to be ceased and indicates the expected steps to be followed.

According to article 44 of the MMFR, existing MMFs (i.e. existing prior to 21 July 2018) must submit an application for authorisation with their competent authority by 21 January 2019 in order to demonstrate their compliance with the Regulation. This application should also include details of arrangements for the cessation of the use of the share cancellation mechanism. In accordance with article 44 of the MMFR, the competent authorities, i.e. the CSSF or the CBI should assess the compliance of each applicant fund with the MMFR no later than 21 March 2019 (two months after the application of the MMFR) and notify the funds immediately with their decision.

With effect from 21 January...