{"id":"circulars/faq-cssf-faq-swing-pricing-mechanism","title":"CSSF FAQ – Swing Pricing Mechanism","type":"circular","date":"2019-07-30","kind":"faq","html":"<p>CSSF FAQ – Swing Pricing Mechanism is a CSSF FAQ, published 30 July 2019.</p>\n<p>Relevant for: Part II UCIs, SIFs, UCITS.</p>\n<h2>Text</h2>\n<p>FAQ Swing pricing mechanism Version 5 – 8 January 2025</p>\n<p>FAQ Swing pricing mechanism Version 5 – 8 January 2025 Update information 08/01/2025</p>\n<p>Version 5. Deletion of Question 4 Version 4. Change in numbering: Question 6.a) became Question 6; Question</p>\n<p>17/08/2021</p>\n<p>6.b) became Question 7 and Question 6.c) became Question 8. Modification of Questions 6, 7 and 8</p>\n<p>07/04/2020</p>\n<p>Version 3. Modification of Questions 6.b) and 6.c)</p>\n<p>20/03/2020</p>\n<p>Version 2. Publication of Question 6.a)</p>\n<p>30/07/2019</p>\n<p>Version 1. First publication</p>\n<p>This document will be updated when necessary and the CSSF reserves the right to adapt its approach to any matter covered by the FAQ at any time. You should regularly check the website of the CSSF in relation to any matter of importance to you to see if questions have been added and/or positions have been adapted.</p>\n<p>FAQ SWING PRICING MECHANISM Version 5 – 8 January 2025</p>\n<p>Table of contents Context ................................................................................................................. 4 Q.1 Should the articles of incorporation or the management regulations of a UCI provide for the use of the swing pricing mechanism? ........................................... 4 Published on 30 July 2019 .............................................................................. 4 Q.2 What information should be mentioned in the prospectus of a UCI in relation to the application of the swing pricing mechanism?.............................................. 4 Published on 30 July 2019 .............................................................................. 4 Q.3 Should the annual and semi-annual report of a UCI provide for disclosure in relation to the use of the swing pricing mechanism? ............................................ 5 Published on 30 July 2019 .............................................................................. 5 Q.4 Does Circular CSSF 02/77 apply to an administrative error in relation to the application of the swing pricing mechanism? ........................................................ 5 Deleted on 8 January 2025............................................................................. 5 Q.5 What are the organisational requirements that apply in the context of the application of the swing pricing mechanism by a UCI? ......................................... 5 Published on 30 July 2019 .............................................................................. 5 Q.6 Can UCIs (UCITS, UCI Part II &#x26; SIFs) increase the swing factor to be applied on the NAV up to the maximum level laid down in the prospectus without prior notification to the CSSF? ....................................................................................... 6 Modified on 17 August 2021 ........................................................................... 6 Q.7 Can UCIs increase the applied swing factor beyond the maximum swing factor laid down in the fund prospectus in the following situations: ..................... 6 1)</p>\n<p>Where the fund prospectus formally offers the possibility to the Board of</p>\n<p>Directors of the UCI or, if applicable, the Management Company to go beyond the maximum level under certain predefined conditions? ........................................... 6 2)</p>\n<p>Where the fund prospectus does not offer the possibility to the Board of</p>\n<p>Directors of the UCI or, if applicable, the Management Company to go beyond the maximum level laid down in the prospectus? ........................................................ 6 Modified on 17 August 2021 ........................................................................... 6 Q.8 Where the fund prospectus formally offers the possibility to the Board of Directors of the UCI or, if applicable, the Management Company to go beyond the maximum swing factor laid down in the prospectus, to what extent can a UCI increase the applied swing factor beyond the maximum swing factor disclosed in the fund prospectus? .................................</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/cssf-faq-swing-pricing-mechanism/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/FAQ_Swing_Pricing.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>"}