On 14 May 2026, HM Treasury (HMT) and the Financial Conduct Authority (FCA) announced plans to reform the UK Money Market Fund (MMF) Regulations.
Summary
HMT and the FCA set out in the announcement that they consider that recent periods of market stress have highlighted the need to strengthen the resilience of MMFs. As a result, in 2023, HMT and FCA consulted on replacing and reforming MMFR.
In relation to the new regime, HMT and the FCA highlight that it will include guidance setting out expectations that UK MMFs hold higher levels of liquidity, which reflects internationally developed proposals. HMT and the FCA also highlighted that they welcomed feedback from across the sector to help develop a proportionate set of proposals that will enhance the resilience of MMFs and that the FCA will issue a statement shortly with further details on its plans on these proposals.
HMT also set out that it recognises the cross-border nature of this sector, and the important role that EU domiciled MMFs play in the UK market such that, in March at the Joint EU-UK Financial Regulatory Forum, the UK and EU recognised the value of constructive engagement on the practices that will enhance the resilience of respective MMF sectors.
Finally, HMT also confirmed its intention to extend the Temporary Marketing Permissions Regime, with a view to establishing a longer-term solution on market access, in line with the UK’s framework and process for recognition of overseas firms and funds.
Next steps
HMT will now lay legislation as soon as parliamentary time allows to establish the new regulatory framework, under which most requirements for UK MMFs will be set out in FCA rules and guidance.