The CSSF consults on Guidance on Money Market Fund Liquid Asset Levels – CSSF

https://www.cssf.lu/en/2026/06/the-cssf-consults-on-guidance-on-money-market-fund-liquid-asset-levels/
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2026-06-10 08:43:23 · tojuri@vixio.com
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TITLE: Luxembourg's Financial Services Regulator Consults on Money Market Fund Liquid Asset Guidance BODY: On June 8, 2026, the Commission de Surveillance du Secteur Financier (CSSF) launched a consultation on guidance for money market fund (MMF) weekly liquid asset (WLA) levels. The consultation follows a June 2026 report published by the European Commission (EC) to the European Parliament and Council assessing the adequacy of the Money Market Funds Regulation (MMFR) from prudential and economic perspectives. The EC determined that the EU's regulatory framework for MMFs continues to function well overall but identified a need for additional guidance to support more consistent and well-calibrated supervision of MMFs across member states and strengthen sector resilience. The EC identified a "market resilience" level of WLA that would enable EU-authorised MMFs to withstand future market stress events based on historical data and mitigate potential transmission of shocks to the broader financial system and real economy. In coordination with the EC, the French Autorité des Marchés Financiers (AMF), the Central Bank of Ireland, and the CSSF are jointly consulting on national guidance for enhanced MMF liquidity risk management practices based on the Commission-suggested market resilience levels. The guidance proposes increased supervisory scrutiny and engagement where MMFs fall below the identified market resilience levels of liquidity. The consultation paper sets out details of the proposed guidance and seeks feedback from stakeholders on the proposals, including specific questions addressed to industry participants. The guidance applies to investment fund managers, specialised investment funds (SIFs), undertakings for collective investment in transferable securities (UCITS), and undertakings for collective investment subject to Part II of the Law of December 17, 2010 (Part II UCIs). Stakeholders must submit responses electronically to opc_prud_risk@cssf.lu by August 3, 2026.
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