The Money Market Funds (Amendment) (EU Exit) Regulations 2019

Authorisation of MMFs

6.  In Article 4—

(a) in paragraph 1—

(i) in the first subparagraph, for the words from “in the Union” to the end, substitute—

“in the United Kingdom as an MMF unless—

(a) it has been authorised by the FCA in accordance with this Regulation;

(b) it is an EU MMF with temporary marketing permission; or

(c) it is an EU MMF which satisfies the condition in paragraph 1A and—

(i) which is a recognised scheme under section 272 of FSMA; or

(ii) in relation to which the FCA has received written notification under regulation 57 (subject to paragraph 1C), 58 or 59 of the AIFM Regulations.”;

(ii) omit the second subparagraph;

(iii) after paragraph 1, insert—

“1A.   An EU MMF satisfies the condition in this paragraph if, immediately before the relevant date, it was—

(a) a recognised scheme under Part 6 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019; or

(b) marketed in the United Kingdom under Part 9A of the Alternative Investment Fund Managers Regulations 2013(1).

1B.   For the purposes of paragraph 1B, the “relevant date” is the date on which—

(a) the EU MMF was declared to be a recognised scheme under section 272 of FSMA, or

(b) the FCA received the written notification referred to in paragraph 1(c)(ii).

1C.   If an EU MMF was marketed in the United Kingdom by an EEA AIFM before exit day under regulation 57 of the AIFM Regulations, the AIFM must give notice to the FCA for the purposes of paragraph 1(c) under regulation 58 or 59 of those Regulations.”

(b) for paragraph 2, substitute—

“2.   The following requirements apply to unit trust schemes (within the meaning of section 237(1) of FSMA)—

(a) a unit trust scheme that applies for authorisation under section 243 of FSMA and under this Regulation for the first time must be authorised as a money market fund under section 243A of FSMA(2);

(b) a unit trust scheme that has already been authorised under section 243 of FSMA may apply to be authorised as a money market fund under section 243A of FSMA and in accordance with the procedure set out in paragraph 5 of this Article.

2A.   The following rules apply to contractual schemes (within the meaning of section 235A(1) of FSMA(3)) —

(a) a contractual scheme that applies for authorisation under section 261D of FSMA and under this Regulation for the first time must be authorised as a money market fund under section 261EA of FSMA(4);

(b) a contractual scheme that has already been authorised under section 261D of FSMA may apply to be authorised as a money market fund under section 261EA of FSMA and in accordance with the procedure set out in paragraph 5 of this Article.

2B.   The following rules apply to open-ended investment companies (within the meaning of section 236(1) of FSMA—

(a) an open-ended investment company that applies for authorisation under regulation 14 of the OEIC Regulations and under this Regulation for the first time must be authorised as a money market fund under regulation 14(1A) of the OEIC Regulations;

(b) an open-ended investment company that has already been authorised under regulation 14 of the OEIC Regulations may apply to be authorised as a money market fund under regulation 14(1A) of the OEIC Regulations and in accordance with the procedure set out in paragraph 5 of this Article.”;

(c) in paragraph 4, for “competent authority of the MMF” substitute “FCA”;

(d) in paragraph 5—

(i) in the opening words, for “its competent authority” substitute “the FCA”;

(ii) in point (f), for “competent authority of the MMF” substitute “FCA”;

(e) omit paragraph 6; and

(f) in paragraph 7, for “ESMA” substitute “the FCA”.

(1)

Part 9A was inserted by S.I. 2019/328.

(2)

Section 243A was inserted by S.I. 2018/698.

(3)

Section 235A was inserted by S.I. 2013/1388.

(4)

Section 261D was inserted by S.I. 2013/1388. Section 261EA was inserted by S.I. 2018/698.