On 6 December 2023, HM Treasury (HMT) published a near-final version of the draft statutory instrument (SI) – the Money Market Funds Regulations 2024 – to replace the Money Market Funds Regulation and create a new framework for money market funds (MMFs). It also published a policy note on the MMFs framework.

The draft SI is part of HMT’s programme to deliver a Smarter Regulatory Framework for financial services, tailored to the UK. Together, the draft SI and the accompanying policy note set out the Government’s approach to establishing a new legislative framework for MMFs following the repeal and replacement of the onshored MMFs Regulation, and will facilitate the delivery of new FCA rules to replace detailed requirements for MMFs. 

The Government is inviting any technical comments on the draft SI by 24 January 2024.

 Alongside this draft SI and policy note, the FCA has also published a consultation on its draft rules for MMFs.