pc
nid 93047
Jun 09, 2026
tojuri@vixio.com
France
Autorité des Marchés Financiers
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1958 charsFrance's Financial Markets Authority Launches Consultation on Money Market Fund Liquidity Recommendation
On June 8, 2026, the Autorité des Marchés Financiers (AMF) launched a public consultation on a draft recommendation concerning the liquidity of money market funds (MMFs). The consultation follows work conducted at European and international levels following market tensions observed in March 2020 affecting MMFs, and recent publications by the European Commission on the application of the Money Market Fund Regulation (MMFR).
The AMF's draft recommendation pursues two objectives: implementing recommendations from European bodies including the European Securities and Markets Authority (ESMA) and the European Systemic Risk Board (ESRB), and international bodies including the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) to strengthen MMF resilience, particularly regarding liquidity risk management; and fostering convergence among major European jurisdictions hosting MMFs, including the United Kingdom, amid evolving international regulatory frameworks.
The draft recommendation establishes market resilience levels based on European Commission guidance published on May 11, 2026. These levels set minimum weekly liquid asset thresholds at 20 percent for variable net asset value MMFs (against a regulatory minimum of 15 percent) and 40 percent for constant net asset value public debt and low-volatility MMFs (against a regulatory minimum of 30 percent). When an MMF's weekly liquid assets fall below these thresholds for 10 business days or longer, or when a prolonged or significant shortfall is anticipated, management companies must notify the AMF with relevant explanations and justification, including stress test results where applicable. The AMF will implement enhanced monitoring and proportionate engagement with affected managers based on risk assessment.
The consultation period closes on August 3, 2026. Responses should be submitted to directiondelacommunication@amf-france.org.
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1919 charsFrance's Financial Markets Authority Launches Consultation on Money Market Fund Liquidity Recommendation
On June 8, 2026, the French Financial Markets Authority (AMF) launched a public consultation on a draft recommendation concerning the liquidity of money market funds (MMFs).
The AMF's draft recommendation pursues two objectives:
To implement recommendations from European bodies, including the European Securities and Markets Authority and the European Systemic Risk Board, and international bodies, including the Financial Stability Board and the International Organisation of Securities Commissions, to strengthen MMF resilience, particularly regarding liquidity risk management.
To promote convergence among the main European jurisdictions that host MMFs, including the United Kingdom, amid evolving international regulatory frameworks.
The draft recommendation establishes market resilience levels based on the European Commission report published on May 11, 2026. The draft recommendations recall that the market resilience levels identified by the European Commission are set at:
20 percent of weekly liquid assets for variable net asset value MMFs, compared to a regulatory minimum of 15 percent provided for by the Money Market Fund Regulation (MMFR).
40 percent of weekly liquid assets for MMFs with a constant net asset value of government debt and low volatility net asset value, against a regulatory minimum of 30 percent provided for by the MMFR.
The draft recommendations also aim to clarify the applicable expectations when the weekly liquid asset levels of a money market fund fall persistently below the market resilience levels, which is that the AMF expects asset management companies to implement enhanced vigilance in monitoring the liquidity risk of the money market funds concerned, notably through rapid escalation and strengthened internal decision-making processes.
Interested parties are encouraged to provide responses by August 3, 2026 to directiondelacommunication@amf-france.org .