On 29 July 2021, the CSSF published the results of its review of the Benchmark Regulation ("BMR") compliance by Luxembourg IFMs (as benchmark users) (CSSF Press Release). The thematic review took place from July to November 2020 and included six authorised Luxembourg IFMs.
In its publication the CSSF reminds that (i) IFMs must implement controls to ensure that benchmarks used are included in the ESMA Register, (ii) they must have in place robust contingency plans to set out the actions that they would take in the event that a benchmark materially changes or ceases to be provided, including defining alternative benchmarks when the original benchmark is no longer available, and if the latter is not the case, an appropriate decision and justification by the management body/governing body of the IFM and (iii) the UCITS Prospectus must disclose whether the benchmark is provided by an administrator included in the ESMA Register and the benchmark contingency plans or indicate how investors can access them.
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