Luxembourg: CSSF FAQs On AIFMs And Non-AIFs SIF And SICARs: PRIIPs Impacts

Last Updated: 25 July 2017
Article by Gabrielle Jaminon

Most Read Contributor in Luxembourg, July 2018

On 6 July 2017 the CSSF published an updated version of its Frequently Asked Questions (FAQ) document on alternative investment fund managers (AIFM) and created a FAQ for SIFs and SICARs which do not qualify as AIFs.

The AIFM FAQ's latest issue highlights the impact of the PRIIPs Regulation on Luxembourg AIFs in the new Section 23. It clarifies the following aspects under points 23.a) to 23.q):

  • The obligation for Luxembourg AIFs advised on, offered or sold to retail investors to have in place a PRIIPs KID from 1 January 2018;
  • The applicability until 31 December 2019 of the exemption provided by Article 32(2) of the PRIIPs Regulation (the exemption of Article 32(2)) to have in place a PRIIPs KID for Luxembourg AIFs sold to retail investors that already issue a UCITS KIID under condition of the related update of the prospectus.;
  • The timescale for retail AIFs to draw up a PRIIPs KID;
  • The exclusion of Luxembourg AIFs solely distributed to professional investors from the obligation to draw up a PRIIPs KID and the strong advice of the CSSF to update their offering documents to state that they solely target professional investors, although the CSSF foresees the possibility to receive a self-assessment form on the status of the AIF;
  • The absence of obligation to provide a PRIIPs KID to retail investors outside of the EU/EEA, unless required by the third country;
  • The absence of obligation to provide a PRIIPs KID to existing retail investors of a Luxembourg retail AIF if the fund is not distributed to any new retail investors;
  • The obligation to draw up a PRIIPs KID for a Luxembourg retail AIF if an existing retail investor wishes to make an additional investment after 1 January 2018 except where he invests through a regular savings plan (periodic subscription) and unless changes are made to the subscription arrangements and a new subscription form is required;
  • The CSSF only requires the notification of the final PRIIPS KID by the manufacturer of the Luxembourg AIF distributed to retail investors, not the notification of its draft versions. However, the CSSF will not apply a visa-stamp on the final version;
  • Similarly, Luxembourg AIFs that have issued a UCITS KIID will only have to file the final version with the CSSF;
  • The CSSF specifies the procedures to follow to file the final version of the PRIIPs KID;
  • New sub-funds/share-classes of Luxembourg AIFs that have issued a UCITS KIID which are launched after 1 January 2018 will benefit of the exemption to issue a PRIIPs KID as per Article 32(2).

In 23.i) the FAQ recalls the rules for the timing of the provision of the PRIIPS KID to retail investors and in 23.j) the language requirements as established by the PRIIPs Regulation.

Similarly, the FAQ for SIF/SICAR highlights the impact of the PRIIPs Regulation on Luxembourg on SIF/SICAR which do not qualify as AIFs.

  • Manufacturers of such Luxembourg SIFs and SICARs distributed to retail investors will have to draw up a PRIIPs KID as of 1 January 2018 but are exempted under Article 32(2) if they have decided to draw up a UCITS KIID before that date, under condition of the related update of the prospectus.
  • Points 23.b) to 23.q) of the AIFM FAQ apply to these Luxembourg products.

The AIFM FAQ is available via the following web link.

The FAQ for SIF/SICAR which do not qualify as AIFs is available via the following web link.

In addition, the CSSF provides guidance on the electronic transmission of documents to the CSSF (FR only).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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