_Following the Circular CSSF 20/764 of 18 December 2020 - which had integrated the ESMA Guidelines 34-39-992 on performance fees in UCITS and certain types of AIFs into CSSF's administrative practices and regulatory approach - on 22 September 2021 the CSSF issued a tailored communication to invite investment fund managers to declare via a new dedicated eDesk application the performance fee models applicable to Luxembourg UCITS and AIFs under their management.
As a reminder, Circular CSSF 20/764 (as well as ESMA Guidelines) should apply to performance fees in UCITS and to AIFs managed by an AIFM, when the AIFM markets the AIF to retail investors, except for closed-ended AIFs and open-ended AIFs that are EuVECAs (or other types of venture capital AIFs), EuSEFs, private equity AIFs or real estate AIFs.
The questionnaire on performance fees will be available on a new eDesk module as from 30 September 2021.
Funds and sub-funds that are not subject to a performance fee must be declared as such accordingly. Those which are still unlaunched, or that are awaiting reactivation after full redemptions, shall also be declared.
For each fund (or sub-fund, where applicable) the relevant investment fund manager is required to submit via eDesk an initial declaration and, in case of future changes to the performance fee model, updated declarations.
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.