CHAPTER III Obligations concerning the risk management of MMFs

Article 27‘Know your customer’ policy

1.

Without prejudice to any more stringent requirements set out in Directive (EU) 2015/849 of the European Parliament and of the Council19, the manager of an MMF shall establish, implement and apply procedures and exercise all due diligence with a view to anticipating the effect of concurrent redemptions by several investors, taking into account at least the type of investor, the number of units or shares in the fund owned by a single investor and the evolution of inflows and outflows.

2.

If the value of the units or shares held by a single investor exceeds the amount of the corresponding daily liquidity requirement of an MMF, the manager of the MMF shall consider, in addition to the factors set out in paragraph 1, all of the following:

(a)

identifiable patterns in investor cash needs, including the cyclical evolution of the number of shares in the MMF;

(b)

the risk aversion of the different investors;

(c)

the degree of correlation or close links between different investors in the MMF.

3.

Where investors route their investments via an intermediary, the manager of an MMF shall request the information to comply with paragraphs 1 and 2 from the intermediary in order to manage appropriately the liquidity and investor concentration of the MMF.

4.

The manager of an MMF shall ensure that the value of the units or shares held by a single investor does not materially impact the liquidity profile of the MMF where it accounts for a substantial part of the total NAV of the MMF.