UK regulator eases money market fund liquidity rules
The UK FCA updated proposals for money market funds to hold 20% to 40% in weekly liquid assets. This replaces an earlier plan for a 50% binding requirement.
The Financial Conduct Authority (FCA) softened proposed liquidity requirements for money market funds to 20-40% of assets on Monday. This replaces a previous proposal that would have mandated a 50% binding weekly liquid asset requirement for all firms. The shift provides fund managers more flexibility while addressing the liquidity risks exposed during the 2020 market volatility.
