AMF Sets New Liquidity Standards for Money Market Funds
Investors in money market funds will see higher liquidity buffers as regulators act to ensure market resilience.
Updated on Oct. 30, 2026 in Stock Markets
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The Autorité des marchés financiers (AMF) has released new liquidity recommendations for money market funds (MMFs) to enhance resilience. These standards, which include specific weekly asset thresholds, are being coordinated with authorities in Ireland and Luxembourg to ensure broader European supervisory consistency.
Why it matters
These changes aim to prevent market instability by requiring funds to hold higher liquidity buffers than previously mandated. For investors holding MMFs, these rules are designed to protect fund stability, reducing the risk of liquidity crises similar to those observed in March 2020.
Funds now face a 20% weekly liquid asset threshold for VNAV MMFs and a 40% requirement for PDCNAV and LVNAV funds, exceeding current regulatory minimums of 15% and 30% respectively. Management companies must alert the regulator if they breach these resilience levels for 10 business days.
The players
Autorité des marchés financiers
The French financial regulator responsible for overseeing investment products and protecting investors.
European Commission
The executive branch of the European Union that sets policy and reports on the adequacy of financial regulations.
The details
The new guidelines force management companies to strengthen internal monitoring and decision-making regarding liquidity risk. Funds are required to maintain specific ratios of assets that can be converted to cash quickly, with companies expected to notify the AMF if these levels remain below the new thresholds for more than 10 business days. The regulator has also indicated it will intensify its own supervision of funds that consistently report liquidity below these suggested resilience markers.
Timeline
Market tensions regarding money market funds were observed in March 2020.
The European Commission published a report on MMFR adequacy in May 2026.
The AMF launched a public consultation on June 8, 2026.
The AMF conducted a public consultation throughout the summer of 2026.
The AMF published the final recommendations on October 30, 2026.
Money Landscape
These new liquidity targets follow the European Commission's May 2026 report on the adequacy of existing money market regulations. The move reflects a broader effort to tighten the oversight of investment funds in light of the volatility spikes that impacted global markets in 2020.
While these rules focus on fund management, they serve as a prompt for investors to review the risk disclosures and liquidity terms of any money market funds in their portfolios. Discuss with a financial advisor how these changes to fund buffers might impact the specific investment vehicles you hold.
The takeaway
These changes prioritize fund stability by mandating higher liquidity cushions, effectively setting a stricter floor for how much cash-equivalent exposure managers must maintain. Monitor your account statements for any updates from fund managers regarding how these revised liquidity protocols influence their operations.
Further reading
For more information on how liquidity standards affect fund stability, visit our guide to Stock Markets.
Source note: This article includes information reported by AMF.
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