meta_id 3148196

On May 13, 2026, the European Commission published a Commission Notice providing frequently asked questions (FAQs) and interpretative guidance on the Money Market Funds Regulation (Regulation (EU) 2017/1131). The notice accompanies the Commission's 2026 follow-up Money Market Funds Report and addresses implementation of certain legal provisions to provide greater certainty for the European Union money market funds (MMF) community. The guidance clarifies key portfolio composition requirements under Articles 24, 25, and 34 of the MMF Regulation, which establish minimum thresholds for daily and weekly maturing assets and reverse repurchase agreements across different MMF types: public debt constant net asset value (CNAV), low volatility net asset value (LVNAV), and variable net asset value (VNAV) MMFs. The Commission emphasises that these regulatory percentages constitute minimum requirements only. Asset managers must ensure portfolios remain robust enough to withstand vulnerabilities during stressed market conditions, potentially requiring holdings above regulatory minimums based on stress testing outcomes and know-your-customer obligations. The notice clarifies that managers of CNAV and LVNAV MMFs are not required to activate liquidity management tools (LMTs) immediately upon falling below minimum liquid asset thresholds. Instead, MMF managers may temporarily utilise buffers during stressed conditions, provided they prioritise corrective actions to restore buffers as soon as possible while protecting investor interests. The Commission identifies resilience levels based on weekly liquid assets as supervisory tools, below which competent authorities should intensify supervisory scrutiny. The guidance supports harmonised supervision of EU MMFs and encourages information sharing among national competent authorities to address potential financial stability risks. This notice reflects the Commission's assessment that the MMF Regulation's safeguards have functioned effectively during previous stress events, including COVID-19 market turmoil and gilt market stress. **Reference:** Commission Notice C/2026/2641, Official Journal C series, May 13, 2026