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UK financial regulator to introduce new rule on money market fund liquidity

By Reuters Reuters
Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville
Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville TOBY MELVILLE Reuters

LONDON - Britain's financial regulator said on Monday it was planning to introduce a new rule which would require all money market funds to hold sufficient liquidity for adequate resilience.

"This is to support our objectives of maintaining financial stability and market integrity," the Financial Conduct Authority said in a statement.

"We intend to set out in guidance our strong supervisory expectation that stable NAV MMFs will need to hold 40% WLA (weekly liquid assets) and variable NAV MMFs will need to hold 20% WLA in order to meet the new resilience requirement."

(Reporting by Sam Tabahriti, writing by Sarah Young; editing by William James)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 8, 2026 at 4:31 AM.

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