Luxembourg - New regulatory requirements for Investment Fund Managers and Investment Funds Circulars CSSF 21/788, 21/789 and 21/790

The free format is replaced by an eDesk form with a predetermined format:

• Description of the issue;
• Questionnaire to be completed by the REA;
• Implication/Potential impact;
• Recommendations;
• Response from the Management of the IFM.

• For 31/12/2021 closing: 31 July 2022
• After 31/12/2021: 7 months after closing date

• Management company subject to Chapter 15 of the 2010 Law;
• Authorized AIFM subject to the 2013 Law;
• Self-managed SICAV and AIF (above thresholds);
• IFMs originating from outside of Luxembourg and providing management company services via a branch in Luxembourg.

• A SAQ to be completed by the IFMs annually;

• Selected answers from the SAQ will be subject to testing by the REA in a Separate Report (SR)

The above questionnaires will be completed in the eDesk platform of the CSSF.

Main themes of the SAQ: Internal organisation / IFM Bodies / Permanent risk management function / Compliance function / Internal audit function / Procedures and Policies / Delegation / IT requirement / Other key functions / Other Requirements

For 31/12/2021 closings:

• SAQ: 30 June 2022
• SR: 30 September 2022

After 31/12/2021:

• SAQ: 4 months after closing date
• SR: 7 months after closing date

• Management company subject to Chapter 15 of the 2010 Law;
• Management company subject to Chapter 16 of the 2010 Law;
• AIFM subject to the 2013 Law (including registered and authorized AIFM);
• Self-managed SICAV and AIF.

WARNING : Registered IFMs will need to appoint a REA for this new AML/CTF external report.

Annual AML survey sent by the CSSF completed by the IFMs to be supplemented by:

• An AML/CFT external report to be completed by the REA. The REA will be asked to corroborate the answers given in the annual AML questionnaire and perform sample testing using a risk-based approach.

The above report is to be completed in the eDesk platform of the CSSF.

Themes: AML/CTF Policies and Procedures / Risk based approach / Investment Fund Due Diligence / Distribution / Discretionary Portfolio Management (depending on IMFs license) / Transfer Agency (if performed in-house) / AML on Investments / Sanction-Name Screening / Delegate Oversight / Oversight over Branches (where applicable) / Cooperation with Authorities 

• For 31/12/2021 closings: 30 September 2022
• After 31/12/2021: 6 months after closing date

Management Letter

No change in the scope :

• Part I & Part II Funds of the 2010 Law
• SIF
• SICAR

The free format is replaced by an eDesk form with a predetermined format:

• Description of the issue;
• Allocation of issue to predefined theme;
•  Questionnaire to be completed by the REA;
• Implication/Potential impact;
• Recommendations;
• Response from the Management of the Fund.

• Part I of 2010 Law: 4 months after closing date
• Part II of 2010 Law, SIF and SICAR: 6 months after closing date

• Part I & Part II Funds of 2010 Law

• SIF (new)

• SICAR (new)

The current LFR is replaced by:

• A SAQ to be completed by the Fund annually;
• Selected answers from the SAQ will be subject to testing by the REA in a Separate Report (SR), including AML questions;

The above questionnaires will be completed in the eDesk platform of the CSSF.

Themes of the SAQ: General information / Organisation of the Fund / Investment compliance / Valuation / NAV determination / Expenses & income / Relationship with Depositary

SAQ

• Part I of 2010 Law: 3 months after closing date
• Part II of 2010 Law, SIF and SICAR: 4 months after closing date

Separate Report

• Part I of 2010 Law: 5 months after closing date
• Part II of 2010 Law, SIF and SICAR: 6 months after closing date