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On May 12, 2026, Estonia's Financial Supervision Authority adopted guidance from the European Securities and Markets Authority (ESMA) on stress test scenarios for money market funds under the Money Market Funds Regulation (MMFR). The authority published the guidance as a recommended directive to market participants operating in Estonia. The ESMA guidance establishes standardised stress test scenarios that money market fund managers must apply when assessing the resilience of their funds under adverse market conditions. The scenarios are designed to ensure consistent stress testing practices across European jurisdictions and enhance the robustness of money market fund operations. By adopting ESMA's guidance as a recommended directive, Estonia's Financial Supervision Authority ensures that Estonian money market fund managers align their stress testing procedures with European standards and best practices. This harmonisation supports systemic stability in money market funding and strengthens investor protection across the European Union. The guidance became effective on May 12, 2026. Money market fund managers operating in Estonia should review the stress test scenarios outlined in the ESMA guidance and implement them into their risk management and governance frameworks. The Financial Supervision Authority has published the guidance in both Estonian and English, enabling market participants to access the requirements in their preferred language. Compliance with the recommended stress test scenarios is expected to support money market fund managers in demonstrating adequate risk management capabilities to regulators and investors. REFERENCES: Estonia's Financial Supervision Authority: https://www.fi.ee/en