Asset Management & Investment Funds: EU & International Developments - Dec 2020

Money Market Funds

ESMA published a press release announcing that it had further updated its reporting instructions under the regulation on money market funds (MMFR). These were last updated in October 2020. 

ESMA published the 2020 update of guidelines on MMF stress tests under the MMFR. The updates take account of MMFs recent experience during March 2020, particularly in relation to redemption scenarios. The COVID-19 crisis has been challenging for MMFs. Risks have increased for MMFs and the money market instruments in which they invest. Several EU MMFs faced significant liquidity issues during the period of acute stress in March 2020. The Guidelines will be translated into the official EU languages and published on ESMA’s website. They will apply two months after the publication of the translations.

ESMA also published confirmation of compliance with its MMF Stress test guidelines.

Proposal to remove Mongolia from 4AMLD list of high-risk third countries

The EU Commission adopted a Delegated Regulation that amends the list of high-risk third countries with strategic AML/ CTF deficiencies produced under Article 9(2) of 4AMLD.

Article 9(2) gives the Commission the power to adopt delegated acts identifying high-risk third countries.

The Delegated Regulation will amend the Annex to Delegated Regulation (EU) 2016/1675 by removing Mongolia from the list of third countries that have been identified as having strategic AML and CTF deficiencies.

If neither the Council nor the Parliament object, the delegated regulation will be published in the Official Journal of the EU and will enter into force 20 days after its publication.

The Annex to Delegated Regulation (EU) 2016/1675 was last amended in May 2020.

For more information in relation to any of these topics please speak with your usual contact on the A&L Goodbody Asset Management & Investment Funds team.

Date published: 17 December 2020