Entry Into Force Of The MMF Regulation

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...