On 25 October 2017, the Draft Bill of Law implementing the Regulation (EU) No 1286/2014 on key information documents on packaged retail and insurance-based investment products (PRRIPs) and modifying the amended Luxembourg law of 17 December 2010 on undertaking for collective investment and the amended Luxembourg law of 7 December 2015 on the insurance sector, has been deposited with the "Chambre des Députés".

From a legislative perspective, the Draft Bill of Law does not bring any substantial amendments to the text of the PRIIPs Regulation.  It specifies that the Commission de Surveillance du Secteur Financier (CSSF) and the Commissariat aux assurances (CAA) respectively for management/investment companies and insurance companies will be the Authorities in charge of the supervision of the compliance with the PRIIPs Regulation. They will have controlling powers as well as the possibility to impose fines (i.e. up to 5.000.000 euros or 3% of the revenues for moral person; up to 700.000 euros for physical person).

Moreover, the Draft Bill of Law states that the SICARs and the other investment funds than the UCITS are authorized to prepare  a UCITS KIID document provided that they clearly state on the document that they are not subject to Directive 2009/65/EC. In this case the management companies, the investment companies and the persons who sell or provide advice on the units or shares of those investment funds or SICARs would benefit from the exemption of article 32 of the Regulation (UE) 1286/2014 and therefore would not have to comply with the requirements of the PRIIPs Regulation until 31 December 2019.The Law of 17 December 2017 is modified accordingly.

The Draft Law also foresees the possibility for the CSSF and the CAA to require prior notification of the KID by the manufacturer to its Competent Authority.

Further details of the Draft Bill of Law can be found via this link.

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