European Commission Roadmaps and inception impact assessments describe the scope, purpose and timing of new law and policies. They also set out plans for evaluations of existing laws or ‘fitness checks’ of multiple laws.

The Commission has now published a Roadmap on the Delegated Act on the Money Market Funds Regulation (MMF Regulation) specifying quantitative and qualitative liquidity requirements applicable to assets received as part of a reverse repurchase agreement and on credit quality assessment.

The MMF Regulation empowers the Commission to adopt three Delegated Acts, following the receipt of technical advice from the European Securities and Markets Authority. In particular, two empowerments for Delegated Acts are foreseen to ensure that every MMF manager invests in assets that received a favourable credit risk assessment. One of them refers to the assets the manager invests directly; the other Delegated Act refers to the received collateral from a reverse repo agreement that must also receive a favourable assessment. A third empowerment for a Delegated Act is designed to ensure full compliance of the provisions in the MMF Regulation with criteria for simple, transparent and standardised securitisation (STS) and assets back commercial papers under the STS Regulation.

The European Securities and Markets Authority (ESMA) published a final report containing technical advice under the MMF Regulation on 17 November 2017 (our blog is here). ESMA’s final report followed a public consultation that opened on 24 May 2017 and closed on 7 August 2017 (our blog is here). In the Roadmap the Commission states that as a consequence of the ESMA consultation it does not intend to run a public consultation on the Delegated Acts.

The deadline for feedback on the Roadmap is 12 February 2018.

View Delegated Act on MMF Regulation, 16 January 2018