Part 3: Access to Financial Services Markets Section 26: Money market funds authorised in approved countries or territories
This section makes the following amendments to Article 4 of the MMFR, which sets out the regulations for MMFs in the UK:
sub-paragraph (aa) is added to paragraph 1 in Article 4 (authorisation of MMFs). This sets out that an MMF may be marketed in the UK if it is authorised and supervised in a country or territory that is approved under Article 4A and meets the conditions in paragraph 1ZA;
paragraphs 1ZA,1ZB and 1ZC are added, which set out the condition that needs to be satisfied for an MMF to be marketed in the UK. This condition is that the FCA must have received a written notification that the MMF intends to be marketed in the UK. This notification must be made by such a person and in such a form and manner as the FCA directs. The FCA may also direct what information is contained in or accompanied by the notification.
	After Article 4, a new ‘Article 4A – Approval of country or territory’ is inserted:
this Article gives HM Treasury the power to make regulations approving a country or territory as being equivalent in respect of MMFs. In order to do this, HM Treasury may not make such regulations unless it is satisfied that the law and practice of the country or territory imposes requirements on its MMFs that have an equivalent effect to the requirements under the MMFR. In making such regulations, HM Treasury may also have regard to any matter they consider relevant;
paragraph 4 sets out that HM Treasury may request the FCA to prepare a report on the law and practice of the country or territory in question, when it is considering whether to make, vary or revoke an approval of its MMFs. This request must be made in writing. If HM Treasury asks for a report, the FCA must provide the report.
	In Article 6(1) (aa) is inserted after point (a). This allows UCITS or AIFs, which are authorised and supervised in a country or territory approved by regulations under the new Article 4A, to be designated as an MMF.