{"id":"circulars/cssf-24-863","title":"Circular CSSF 24/863","type":"circular","date":"2024-10-21","kind":"circular","html":"<p>Circular CSSF 24/863 is a CSSF circular, published 21 October 2024. Subject: Guidelines on funds’ names using ESG or sustainability-related terms.</p>\n<p>Relevant for: Investment funds and vehicles, Other specific authorisations, registrations and information, Part II UCIs, Pension funds, Securitisation undertakings, SICARs, SIFs, UCITS.</p>\n<p>Main topic: Sustainable finance. Keywords: Internal governance, Transparency.</p>\n<h2>Text</h2>\n<p>Circular CSSF 24/863 Guidelines on funds’ names using ESG or sustainabilityrelated terms</p>\n<p>Circular CSSF 24/863 Guidelines on funds’ names using ESG or sustainability-related terms To all UCITS management companies (as well as UCITS which have not designated a UCITS management company), alternative investment fund managers including internally managed AIFs, EuVECA, EuSEF and ELTIF and money market fund managers.</p>\n<p>Luxembourg, 21 October 2024 Ladies and Gentlemen,</p>\n<p>Subject: Application of the Guidelines of the European Securities and Market Authority on funds’ names using ESG or sustainability-related terms (ESMA34-1592494965-657).</p>\n<ol>\n<li>\n<p>Purpose of the Circular The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the Guidelines of ESMA on funds’ names using ESG or sustainability-related terms (Ref. ESMA34-1592494965-657) (the “Guidelines”), published on 21 August 2024. Consequently, the CSSF will integrate the Guidelines into its administrative practices and regulatory approach with a view to promoting supervisory convergence in this field at European level as of the date of application of the Guidelines.</p>\n</li>\n<li>\n<p>The Guidelines The Guidelines are based on Article 23(7) of Directive 2011/61/EU on alternative investment fund managers (the “AIFMD”), Article 69(6) of Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (the “UCITS Directive”) and Article 16(1) of Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (the “ESMA Regulation”). The purpose of these guidelines is to specify the circumstances where the fund names using ESG or sustainability-related terms are unfair, unclear or misleading. The Guidelines apply as from 21 November 2024. Managers of any new funds created after the date of application of the Guidelines should apply these Guidelines immediately as from the application date in respect of those funds. Managers of funds existing before the date of application of the Guidelines should comply with the Guidelines with respect to those funds at the latest six months after the date of application of the Guidelines (namely, 21 May 2025). The Guidelines are attached to this circular and are available on ESMA’s website Guidelines on funds' names using ESG or sustainability-related terms (europa.eu).</p>\n</li>\n<li>\n<p>Scope of application This circular applies to UCITS management companies (as well as UCITS which have not designated a UCITS management company), alternative investment fund managers including internally managed AIFs, EuVECA, EuSEF and ELTIF and money market fund managers.</p>\n</li>\n<li>\n<p>Legal basis The Guidelines apply in relation to Article 14(1)(a) of UCITS Directive (Article 111 (a) of the Law of 17 December 2010 relating to undertakings for collective investment), Article 12(1)(a) of AIFMD (Article 11 (1) (a) of the Law of 12 July 2013 on alternative investment fund managers) and Article 4(1) of Regulation (EU) 2019/1156. In particular, they apply in relation to the obligation to act honestly and fairly in conducting their business as well as the obligation that all information included in marketing communications is fair, clear and not misleading.</p>\n</li>\n<li>\n<p>Date of application This circular shall apply as from 21 November 2024.</p>\n</li>\n</ol>\n<p>Annex</p>\n<p>Guidelines on funds’ names using ESG or sustainability-related terms</p>\n<p>21/08/2024</p>\n<p>ESMA34-1592494965-657</p>\n<p>Guidelines on funds’ names using ESG or sustainability-related terms</p>\n<p>Table of Contents 1.</p>\n<p>Scope ..........................................................................................................................3</p>\n<p>Legislative references, abbreviations and definitions ................................................</p>\n<p>The text above is the opening of the document; the PDF carries the whole.</p>\n<p><a href=\"https://www.cssf.lu/en/Document/circular-cssf-24-863/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/cssf24_863eng.pdf\" target=\"_blank\" rel=\"noreferrer\">PDF</a>. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.</p>"}