IRELAND: CBI Publishes Notice of Intention in Relation to the ESMA Guidelines on Stress Test Scenarios under the Money Market Fund Regulation

Friday May 1 2020

On 30^th April 2020, the Central Bank of Ireland published a notice of intention in relation to the application of the ESMA Guidelines on stress test scenarios under the Money Market Fund (MMF) Regulation (EU) 2017/1131.

This notice of intention relates to the ‘ESMA Guidelines on stress test scenarios under the MMF Regulation (ESMA34-49-172)’ which the European Securities and Markets Authority (ESMA) published on 3 March 2020. The Guidelines apply from 4 May 2020.

The Guidelines apply to competent authorities, MMFs and managers of MMFs as defined in the MMF Regulation (EU) 2017/1131.

The Guidelines apply in relation to Article 28 of the MMF Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by MMFs or managers of MMFs in accordance with that Article.

 ESMA have noted that these Guidelines will be updated at least every year taking into account the latest market developments.

The Central Bank of Ireland will, in due course, consult on the incorporation of a provision in the Central Bank UCITS Regulations and AIF Rulebook that all managers of MMFs adhere to the Guidelines. In the interim, the Central Bank expects full compliance with the Guidelines from 4 May 2020.

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