The AMF publishes its recommendations on the liquidity of Money Market Funds
AI Analysis
The AMF has finalized Recommendation DOC-2026-07 on money market fund liquidity, following its 8 June 2026 consultation and coordinated work with Ireland and Luxembourg. The recommendation introduces supervisory market-resilience reference levels above the binding MMFR minima: 20% weekly liquid assets (WLA) for VNAV MMFs and 40% for public debt CNAV and LVNAV MMFs, with notification and escalation expectations where breaches persist or are expected to be prolonged or significant.
Key dates
- 2026-06-08
- The AMF launched its public consultation on the draft recommendation on MMF liquidity.
- 2026-10-30
- The AMF published final Recommendation DOC-2026-07 on liquidity management for money market funds.
Suggested considerations
- Consider mapping each affected MMF’s current and stressed WLA against both the applicable MMFR minimum and the AMF market-resilience reference level of 20% or 40%.
- Consider documenting fund-specific liquidity calibration, including investor concentration, expected redemption patterns, dealing frequency, portfolio composition, currency exposure and market-liquidity assumptions, rather than relying only on a static WLA benchmark.
- Consider reviewing liquidity-risk dashboards and escalation triggers so that a fall below the relevant resilience level is identified promptly and escalated through strengthened internal governance.
- Consider establishing a documented process to determine when a breach has persisted for 10 business days and when a prolonged or significant deviation is reasonably anticipated.
- Consider preparing an AMF notification package containing the duration and scale of the deviation, its causes, remedial measures, portfolio and investor-liquidity analysis, and relevant stress-test results.
- Consider reviewing stress-testing scenarios and management information to ensure they support decisions to use or rebuild liquidity buffers without automatically activating liquidity-management tools solely because the resilience level is breached.
- Consider confirming that policies distinguish the AMF supervisory resilience levels from the binding 15% and 30% MMFR WLA minima and identify the different consequences of each threshold.
- Consider monitoring coordinated guidance from the Central Bank of Ireland, Luxembourg’s CSSF and the UK FCA because comparable 20% and 40% reference levels may affect cross-border group governance and supervisory expectations.
What changed
The AMF expects VNAV MMFs generally to maintain at least 20% WLA, compared with the 15% statutory minimum under Regulation (EU) 2017/1131 on money market funds (MMFR). Public debt CNAV and LVNAV MMFs are expected generally to maintain at least 40% WLA, compared with the 30% MMFR minimum. These are supervisory market-resilience levels rather than new statutory MMFR minimums. Where a fund falls sustainably below the relevant level, its management company is expected to apply heightened liquidity-risk vigilance, rapid escalation procedures and strengthened internal decision-making. If the breach persists for 10 business days, or if a prolonged and/or significant deviation is anticipated, the management company must notify the AMF with explanations and justifications, including stress-test res
Compliance impact
The publication does not replace or increase the binding MMFR minimum WLA requirements of 15% for VNAV MMFs and 30% for public debt CNAV and LVNAV MMFs, but it creates clear supervisory expectations above those minima. Persistent or anticipated material breaches may lead to mandatory AMF notification, enhanced supervisory engagement and scrutiny of liquidity-risk governance, escalation and stress
Who is affected
Related regulations
References
AI-generated analysis. May contain errors or omissions — verify with the original AMF source before acting. Full disclaimer.
What the AMF said
MMF Asset management Cooperation The AMF publishes its recommendations on the liquidity of Money Market Funds
Published by AMF . Read the full notice at the source for the authoritative text.