On 25th August 2020, the Financial Services and Markets Authority (FSMA) published a document that addresses the guidelines by the European Authority for Securities and Markets (ESMA) on the reporting to competent authorities under Article 37 of the Money Market Funds Regulation and on its implementation by the FSMA.
ESMA issued guidelines and recommendations to competent authorities or financial market participants in order to establish coherent, efficient and effective supervisory practices within the European system of financial supervision and to ensure common, uniform application and consistent with European Union law.
According to paragraph 3 of Article 16 of the above mentioned Regulation, the competent authorities and financial market players must do their utmost to comply with these guidelines and recommendations and within two months of the issuance of a guideline or recommendation, each competent authority shall indicate whether it complies or intends to comply with this guideline or recommendation. If a competent authority does not respect it or does not intend to respect it, it informs the Authority, giving reasons for its decision.
As a reminder, the regulation on funds stipulates that, for each MMF it manages, the manager reports to the competent authority for the MMF on a quarterly basis (or annually if the assets of the MMF do not exceed EUR 100 million). The guidelines describe the model information provided for by the implementing technical standards (ITS) that MMF managers should use for reporting to competent authorities.
In particular, they set out the general principles that apply to all MMF reporting and provide additional guidance on reporting and reporting periods, on the procedure to be followed for the first report as well as on specifications for reporting. each field block in the report template and describes the fields relevant to a particular topic, with guidance on how to complete them.