ESMA clarifies external support within the meaning of Article 35 of the MMF Regulation

09 July 2020

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Friday, July 10, 2020

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09 July 2020
COVID-19

Fund Management

ESMA is issuing this statement in the context of financial markets authorities recent actions to mitigate the impact of COVID-19 on the EUs financial markets, to clarify the potential interaction between the intermediation of credit institutions and the requirements of Article 35 of the MMF Regulation on external support.
It also aims to coordinate the supervisory approaches of national competent authorities (NCAs) in light of these and any future liquidity challenges for MMFs in the context of the current COVID-19 pandemic.
In particular, the market liquidity brought by some of these measures mayhavealso indirectly benefited MMFs through the intermediation of credit institutions.
ESMA, together with NCAs, will continue to closely monitor the situation and will take or recommend any measures necessary to mitigate the impact of COVID-19.