On 8 June 2026, the Financial Conduct Authority (FCA) published a new webpage providing an update on reforms to the UK Money Market Fund Regulation (UK MMRF).
In its update the FCA sets out some of the key proposals that its original consultation included and the responses to them.
The key proposals included:
- A significant increase in the minimum liquid asset requirement for all MMFs, raising daily liquid assets (DLA) and weekly liquid assets (WLA) levels to 15% and 50% of their assets respectively.
- The removal of the regulatory link between liquidity levels in MMFs that have the ability to offer subscriptions and redemptions at a constant net asset value (NAV) (so-called ‘stable NAV MMFs’) and the need for the manager to consider or impose tools such as liquidity fees or redemption gates. This is known as ‘delinking’ and was intended to make those MMFs’ liquidity levels more usable.
The FCA also describes updated proposals which include introducing a new rule requiring all MMFs to hold sufficient liquidity for adequate resilience. It will also retain the current minimum WLA requirements as set out in the UK MMFR whilst introducing guidance setting out a strong supervisory expectation that stable NAV MMFs will need to hold 40% WLA and variable NAV MMFs will need to hold 20% WLA in order to meet the new resilience requirement. The FCA is also planning to retain the current DLA requirements and do not plan new guidance on DLA levels.
Next steps
The Government expects that legislation for the repeal of the MMFR will be introduced by the end of 2026 and the FCA plans to make its new MMF rules to this timescale.
The FCA’s policy statement will provide more detail on the updated proposals.
The FCA also plans to issue interim final guidance on UK MMF WLA levels before this.