FAQ CSSF – Questions/Réponses relatives à la loi du 17 décembre 2010 concernant les organismes de placement collectif

The CSSF FAQ – LAW OF 17 DECEMBER 2010 and contains information related to the Luxembourg Law of 17 December 2010 on undertakings for collective investment (UCI Law). It includes updates and modifications made to the FAQ over time, with this version 17 published on 28 December 2023.
The document covers various topics such as the eligibility of investments in the 10% limit of Article 41(2) of the Law, the eligibility of OTC bond markets in non-Member States of the European Union, and the criteria for a financial index to qualify as such under Article 41(1)(g) of the Law. It also addresses the minimum number of independent members required in relevant bodies to comply with the requirements of Article 24 of the UCITS V Delegated Regulation, as well as the cooling-off period for individuals previously involved with entities related to the Chapter 15 ManCo or the depositary.
Furthermore, the document discusses the annual updating of KIIDs for Luxembourg retail UCITS, the application of CSSF’s Frequently Asked Questions concerning the KIID to UCITS that issue a PRIIPs KID, and the impact of the ESMA Opinion on share classes of UCITS, including the requirements for currency risk hedging strategies and transparency.
Additionally, it provides information on data transfer conditions by a central administration or a depositary to another service provider, including the required notification details to the CSSF. The document also outlines the specific information that should be included in the notification to the CSSF in case of a breach of the VaR limit by an investment fund manager.
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This Version 17, published on 28 December 2023, replaces the term „Central Administration“ by „UCI administrator“ in line with CSSF Circular 22/811 (question 8.1). Version 17 also repeals questions 6.2 and 6.5 and adds questions 6.7 ii and 6.7 iii to Chapter 6 „Impact of the PRIIPs Regulation“ on pp. 37-38, which we would like to present in full, together with a brief summary of their corresponding answers:
ii) Does a specific yearly timeline apply in connection with the annual update of PRIIPs KID for Luxembourg UCITS?
No, a specific yearly timeline is not mandated by Article 15 of Commission Delegated Regulation (EU) 2017/653 for the annual update of PRIIPs KID for Luxembourg UCITS. The regulation requires manufacturers to review the information within the PRIIPs KID at least every 12 months from the initial publication, without specifying a yearly timeline. Nevertheless, manufacturers are encouraged to perform annual updates and submit the PRIIPs KID to the CSSF within 35 business days after 31 December each year.
iii) When should the information on past performance be updated and published?
The information on past performance, as per Article 8(3) of Delegated Regulation (EU) 2017/653, should be updated within 35 business days after 31 December of each year. Whether included on a website or within the PRIIPs KID itself, manufacturers must adhere to the same timeframe for updating and submitting the document to the CSSF.