HM Treasury and Financial Conduct Authority outline UK money market fund reforms and plan Temporary Marketing Permissions Regime extension

HM Treasury, together with the Financial Conduct Authority, has announced plans to replace and reform the UK Money Market Fund Regulation regime following the 2023 consultation. The government will lay legislation when parliamentary time allows to establish a new framework under which most requirements for UK money market funds will be set through FCA rules and guidance, including guidance that sets expectations for higher liquidity levels. Subject to parliamentary approval, the new regime is expected to be in place by the fourth quarter of 2026. The reform is presented as a response to market stress episodes that exposed the need to strengthen money market fund resilience, and as part of internationally developed proposals that the UK helped shape. HM Treasury also confirmed its intention to extend the Temporary Marketing Permissions Regime while it develops a longer-term solution on market access in line with the UK's framework for recognising overseas firms and funds. The update also notes the importance of EU-domiciled money market funds in the UK market, refers to UK-EU discussions at the Joint EU-UK Financial Regulatory Forum in March, and welcomes the European Commission report published on 11 May on expectations for those funds. The Financial Conduct Authority will issue a further statement shortly with more detail on its implementation plans.