FAQ on Circular CSSF 24/856 is a CSSF FAQ, published 28 March 2024 and updated 24 December 2024.
\nRelevant for: Part II UCIs, SICARs, SIFs, UCITS.
\nKeywords: Accounting, AIF (alternative investment fund), Approved statutory auditor (réviseur d'entreprises agréé), Asset valuation, Depositary, ELTIF, EuSEF, EuVECA, Internal governance, Investor protection, Money Market Fund (MMF), NAV calculation, Risk management, UCI administration.
\nCircular CSSF 24/856 Protection of investors in case of an NAV calculation error, an instance of non-compliance with the investment rules and other errors at UCI level
\nIn case of discrepancies between the French and the English texts, the French text shall prevail.
\nCircular CSSF 24/856 Protection of investors in case of an NAV calculation error, an instance of non-compliance with the investment rules and other errors at UCI level
\nTo all undertakings for collective investment subject to the CSSF’s supervision, to all investment fund managers and to those involved in the functioning and control of these undertakings.
\nLuxembourg, 28 March 2024 Ladies and Gentlemen, The purpose of this Circular is to set out the guidelines to be followed by collective management professionals that operate in Luxembourg in case of errors in the administration or management of undertakings for collective investment subject to the CSSF’s supervision (the \"UCIs\"). More specifically, these guidelines cover errors in the calculation of the net asset value (“NAV”) of a UCI, instances of non-compliance with the investment rules applicable to UCIs as well as other errors at UCI level, as specified in this Circular. In accordance with the provisions laid down in Chapter 10, this Circular repeals Circular CSSF 02/77 on the protection of investors in case of NAV calculation error and correction of the consequences resulting from non-compliance with the investment rules applicable to undertakings for collective investment. Following the regulatory changes since the issue of Circular CSSF 02/77 as well as the developments in the supervision of UCIs by the CSSF and in the industry practices, this Circular seeks to specify its scope of application and to provide more details with regard to the guidelines to be followed in case of NAV calculation errors and instances of non-compliance with the investment rules. Furthermore, this Circular also specifies the guidelines to be followed in case of other errors which may occur at UCI level. It is the responsibility of the UCI dirigeants, investment fund managers and those involved in the functioning and control of UCIs to ensure that any errors covered by this Circular are treated in accordance with the guidelines of this Circular. Compliance with these guidelines is important in order to protect the interests of UCIs and/or aggrieved investors and to maintain the trust of investors in collective management in general and of professionals carrying out their operations in Luxembourg in particular.
\nTABLE OF CONTENTS 1. Definitions and abbreviations .......................................................................................... 5 2. Scope of application and legal basis ................................................................................. 8 2.1. Scope of application ................................................................................................. 8 2.2. Legal basis for the guidelines laid down in this Circular ................................................. 9 3. Roles of the different stakeholders in the treatment of errors/instances of non-compliance ... 11 3.1. General principles .................................................................................................. 11 3.2. UCI dirigeants ....................................................................................................... 11 3.3. Investment fund manager ....................................................................................... 12 3.3.1. Luxembourg IFM .............................................................................................. 12 3.3.2. IFM managing Luxembourg UCIs on a cross-border basis ...................................... 13 3.3.3. Registered AIFM of EuVECAs/EuSEFs .................................................................. 13 3.4. UCI administrator .............................................................................
\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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