Qualifying money market funds offer payment firms a regulated way to balance liquidity, capital preservation, diversification, and yield in client money management.
In today’s elevated interest rate environment, payment leaders are seeking smarter ways to manage client money, not just to meet regulatory obligations, but to enhance financial and operational outcomes. Qualifying money market funds (QMMFs) offer a compelling alternative to traditional bank deposits, combining capital preservation, liquidity, diversification, and yield potential within a robust regulatory framework. The following highlights explain how QMMFs can support both compliance and operational objectives.
- Qualifying money market funds (QMMFs) offer a compelling alternative to traditional bank deposits, combining capital preservation, liquidity, diversification, and yield potential within a robust regulatory framework.
- A QMMF must be a UK UCITS, authorised under the UK’s implementation of the UCITS Directive, and meet strict standards for liquidity, transparency, and risk management. This ensures compliance with FCA rules for protecting client money.
- Federated Hermes’ UK-domiciled LVNAV Money Market Fund is designed to meet both regulatory and operational needs, offering a low-volatility, high-liquidity solution for protecting client money.
Read the white paper to explore how QMMFs can help optimise client money management in today’s market environment.
For professional investors only. Capital at risk.
