Circular CSSF 18/698 is a CSSF circular, published 23 August 2018. Subject: Authorisation and organisation of investment fund managers incorporated under Luxembourg law; Specific provisions on the fight against money laundering and terrorist financing applicable to investment fund managers and entities carrying out the activity of registrar agent. It was repealed by Circular CSSF 23/839.
\nRelevant for: AIFMs, Central Securities Depositories (CSDs), Credit institutions, Credit servicers, Investment firms, Investment fund managers, Management companies - Chapter 15, Management companies - Chapter 16, Part II UCIs, SICARs, SIFs, Specialised PFS, UCITS.
\nMain topic: Financial crime. Keywords: Accounting, AML/CFT, Authorisation, Customer onboarding, Information and communications technology (ICT), NAV calculation, Outsourcing, UCI administration.
\nAmends Circular CSSF 11/512, Circular CSSF 17/671.
\nIn case of discrepancies between the French and the English text, the French text shall prevail.
\nLuxembourg, 23 August 2018
\nTo all investment fund managers and entities carrying out the activity of registrar agent
\nRe:
\nAuthorisation and organisation of investment fund managers incorporated under Luxembourg law Specific provisions on the fight against money laundering and terrorist financing applicable to investment fund managers and entities carrying out the activity of registrar agent
\nLadies and Gentlemen, This circular applies to investment fund managers incorporated under Luxembourg law (hereinafter “IFMs”). IFMs comprise the following: -
\nmanagement companies incorporated under Luxembourg law and subject to Chapter 15 of the Law of 17 December 2010 relating to undertakings for collective investment (hereinafter “2010 Law”); these entities will be referred to hereinafter as “ManCos” or “IFMs”; management companies incorporated under Luxembourg law and subject to Articles 1251 or 125-2 of Chapter 16 of the 2010 Law; these entities will be referred to hereinafter as “AIFMs” or “IFMs”; Luxembourg branches of IFMs subject to Chapter 17 of the 2010 Law; investment companies which did not designate a management company within the meaning of Article 27 of the 2010 Law (hereinafter “SIAGs”); alternative investment fund managers authorised under Chapter 2 of the Law of 12 July 2013 on alternative investment fund managers (hereinafter “2013 Law”); these entities will be referred to hereinafter as “AIFMs” or “IFMs”; as well as internally managed alternative investment funds within the meaning of point (b) of Article 4(1) of the 2013 Law (hereinafter “FIAAGs”).
\nThis circular does not apply to IFMs referred to in Chapter 18 of the 2010 Law. The entities referred to in Article 3 of the 2013 Law and which are not included in the above definition of IFMs are also excluded from the scope of application of this circular. Circular CSSF 12/546, as amended, was applicable to management companies incorporated under Luxembourg law and subject to Chapter 15 of the 2010 Law as well as to SIAGs. The purpose of this circular is to replace Circular CSSF 12/546, as amended, in order to take into account the legislative developments regarding alternative investment funds and to specify in a single circular the conditions for obtaining and maintaining the authorisation for all IFMs as defined above. It also applies to branches and representative offices which an IFM has established in Luxembourg and/or abroad. As regards the activity of registrar agent, credit institutions, investment firms, professionals of the financial sector and IFMs incorporated under Luxembourg law as well as Luxembourg branches of foreign institutions must refer to Sub-chapter 5.4. Organisation of the fight against money laundering and terrorist financing, and in particular point 304. The purpose of the circular is to provide additional clarifications on certain conditions for authorisation, more particularly the shareholding structure, the minimum own funds requirements, the administrative bodies, the arrangements concerning the central administration and governance and the rules governing the delegation framework. Furthermore, the circular includes rules, with reference to CSSF Regulation N° 10-04 and Delegated Regulation (EU) 231/2013, regulating the compliance and internal audit functions as specified in Circulars CSSF 04/155 and IML 98/143. Consequently, Circulars CSSF 04/155 and IML 98/143 are no longer applicable to IFMs. Yours faithfully, COMMISSION de SURVEILLANCE du SECTEUR FINANCIER
\nJean-Pierre FABER
\nSimone DELCOURT
\nClaude MARX
\nTABLE OF CONTENTS
\nPart I. Definitions and abbreviations .............................................................................................. 8 Part II.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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