Global Trustee and Fiduciary Services Bite-Sized Issue 6 2026

9 AIFMD CRYPTOASSETS FINTECH FSB IOSCO MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 6 | 2026 Quick LInks Report on the Adequacy of the Money Market Funds Regulation From a Prudential and Economic Point of View On 11 May 2026, the European Commission (Commission) published a report and FAQs which aim to provide key additional guidance and to support more consistent and well-calibrated supervision of money market funds (MMFs) across the EU, strengthening the resilience of the sector. The Commission says that the two publications will help MMF managers and competent authorities to identify situations that may require closer scrutiny, reducing the risk of contagion to the EU financial system and wider economy. The Commission says that the report has assessed the resilience of weekly liquid assets (WLAs), which is considered a useful WLA benchmark for liquidity risk management and supervision. Based on extensive data analysis, this report concludes that the appropriate WLA benchmark levels (market resilience levels) are 20% for variable net asset value MMFs and 40% for public debt constant net asset value (CNAV) and low volatility net asset value (LVNAV) MMFs. The Commission says it therefore believes that these market resilience levels may serve as benchmarks for MMF managers, in particular in risk management roles, and national competent authorities, to help identify situations that may warrant closer monitoring and increased supervisory engagement. The FAQs address three questions: • What are the main provisions on portfolio composition that asset managers of MMFs must comply with? • If the portfolio of an MMF comprises the precise percentages of reverse repurchase agreements, and daily and weekly maturing assets, as set out in the MMF Regulation, is this considered always sufficient to comply, at all times, with the relevant portfolio rules under the MMF Regulation? • Does the manager of a CNAV or LVNAV MMF need to activate Liquidity Management Tools as soon as the level of liquid assets falls below the limits set out in Articles 24, 25 and 34 of the MMF Regulation? Link to Report here Link to FAQs here Link to Commission Newsletter here ESMA Consults on a New Simplified Approach to Updating MMF Stress Test Parameters On 5 May 2026, the European Securities and Markets Authority (ESMA) launched a consultation on a new approach to updating the parameters for stress test scenarios under the Money Market Funds framework. ESMA proposes replacing the current annual amendments to Section 5 of the Guidelines with an annual web-based publication of the calibration parameters. The Guidelines would continue to define the stress testing framework and methodology, while the website would serve as a single point of access for the latest annual calibrations. ESMA says the proposed approach aims to simplify the update process and improve accessibility, allowing market participants to apply updated parameters immediately after approval. It is also intended to reduce compliance and supervisory burdens, in line with ESMA’s Simplification and Burden Reduction initiative. The consultation period closes on 6 August 2026 . ESMA says it will consider the feedback received and expects to publish the corresponding final report in H2 2026. The new procedure for the update of the parameters will apply with the next update, which is expected at the end of 2026. Link to the Consultation here