Britain confirms money market fund reform plans

LONDON - The British government on Thursday confirmed plans to reform rules governing money market funds, which been a focus of regulators since the market turmoil of March 2020, when funds were hit by heavy redemptions and liquidity strains during the COVID-19-induced "dash for cash".

The government also said new guidance would require money market funds to hold higher levels of liquidity, with the new regime expected to be in place by the end of the year, subject to approval by lawmakers.

Britain's financial regulator consulted on reforms in 2023 that aimed to make it easier for funds to sell assets in periods of stress, following a recommendation from the Bank of England that the sterling money market funds sector, widely used by companies for day-to-day funding and parking cash overnight, needed to be more resilient.

The government said the Financial Conduct Authority would issue a statement shortly with further details on the plans.

(Reporting by Phoebe Seers; Editing by Alex Richardson)

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This story was originally published May 14, 2026 at 2:33 AM.