meta_id 3142603

On 11 May 2026, the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union published a report assessing the adequacy of the Money Market Funds Regulation (MMFR) from prudential and economic perspectives. The report concludes that the EU's regulatory framework for money market funds continues to function well overall. The analysis confirms that money market fund (MMF) managers generally maintain a cautious approach, keeping liquidity reserves above regulatory minimums. However, the Commission identifies that the market would benefit from additional guidance to support more consistent and well-calibrated supervision of MMFs across member states. To address this gap, the Commission has issued Frequently Asked Questions (FAQs) alongside the report, providing key additional guidance on the interpretation and implementation of certain legal provisions of the MMFR. The guidance aims to strengthen the resilience of the money market fund sector across the EU by helping MMF managers and competent authorities identify situations requiring closer scrutiny. This enhanced supervisory clarity is intended to reduce the risk of contagion to the EU financial system and the wider economy. The report and accompanying FAQs represent the Commission's effort to ensure consistent application of the MMFR across member states, supporting both industry compliance and regulatory effectiveness. The publication reflects the Commission's ongoing commitment to maintaining financial stability within the money market fund sector. **References:** European Commission. Report on the adequacy of the Money Market Funds Regulation from a prudential and economic point of view. 11 May 2026. Available at: https://finance.ec.europa.eu/ European Commission. Frequently asked questions on the interpretation and implementation of certain legal provisions of the Money Market Funds Regulation. 11 May 2026.