The Money Market Funds Regulations 2018

Amendments to the Open-Ended Investment Companies Regulations 2001

3.—(1) The Open-Ended Investment Companies Regulations 2001(1) are amended as follows.

(2) In regulation 2(1)(2) (interpretation)—

(a) in the appropriate place insert ““MMF Regulation” means Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds;”;

(b) in the definition of “authorisation order” for “regulation 14” substitute “regulation 14(1) or regulation 14(1A)”.

(3) In regulation 12 (applications for authorisation)—

(a) before paragraph (1) insert—

“(A1) An application for an authorisation order in respect of a body may be made to the Authority for—

(a) an order declaring the body to be an open-ended investment company;

(b) an order declaring the body to be a money market fund.”.

(b) in paragraph (1) omit “in respect of a proposed open-ended investment company”.

(4) In regulation 14 (authorisation) after paragraph (1) insert—

“(1A) Where an application is made under regulation 12(A1)(b) the Authority may make an authorisation order in respect of a body as a money market fund if conditions A and B are met.

(a) Condition A is that the Authority is satisfied that the body will be able to comply with the requirements imposed on a money market fund under the MMF Regulation.

(b) Condition B is that—

(i) the body is an open-ended investment company; or

(ii) the body is the subject of an application under regulation 12(A1)(a) and the requirements in regulation 15 are met in relation to that application.”.

(5) In regulation 15 (requirements for authorisation) in paragraph (1) after “regulation 14(1)(a)” insert “and 14(1A)(b)”.

(6) In regulation 25 (directions) after paragraph (1)(b)(ii) insert—

“(iii) has contravened a provision of the MMF Regulation; or”.

(1)

S.I. 2001/1228.

(2)

Regulation 2(1) was amended by S.I. 2001/3755, S.I. 2003/2066, S.I. 2008/948, S.I. 2009/533 and S.I. 2011/3049.