Regulatory Client Update / March 2021

09 March 2021




Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (SFDR) will apply from 10 March 2021.

On 27 January 2021 CSSF issued a circular letter relating to the annual online survey for the year 2020. The survey answers will have to be submitted by professionals through the CSSF eDesk portal by 15 March 2021.


Luxembourg Market Update:

The Association of the Luxembourg Fund Industry (ALFI) announced that the total assets under management in Luxembourg domiciled investment funds hit another all-time record of EUR 5.050 trillion as at 31 January 2021.


Regulatory Developments in and beyond Luxembourg: 

18 December 2020:

Letter from the ESAs to the EC on priority issues in relation to SFRD application

The CSSF published circular 20/764 concerning ESMA's guidelines on performance fees in UCITS and certain types of AIFs.

The Guidelines are effective as from 6 January 2021. Managers of any new funds created after the date of application of the Guidelines with a performance fee, or any funds existing before the date of application that introduce a performance fee for the first time after that date, should comply with these Guidelines immediately in respect of those funds. Managers of funds with a performance fee existing before 6 January 2021 should apply these Guidelines in respect of those funds by the beginning of the financial year following 6 months from 6 January 2021. The Guidelines are also applicable as of 6 January 2021 for any newly created compartments of an existing umbrella, i.e. in relation to any new compartment setting up a performance fee at compartment or classes of units/shares level.


31 December 2020:

CNPD updates guidance on consequences of Brexit for international data transfers

The national commission for data protection (CNPD) published updated guidance on the consequences of Brexit for international data transfers. This guidance aims to help companies, public bodies and Luxembourg associations that are transferring personal data to the United Kingdom (UK).


7 January 2021:

Letter from the ESAs to the EC on priority issues in relation to SFRD application

The Chair of the Joint Committee of the ESAs wrote a letter to the European Commission indicating that while preparing the draft Regulatory Technical Standards under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial sector (SFDR), the ESAs have encountered important areas of uncertainty in the interpretation of SFDR. The letter and its Annex contain a list of questions that the ESAs believe would benefit from clarification to facilitate an orderly application of SFDR from 10 March 2021. Questions and priority areas set out in the Annex deal inter alia with the following subject-matters: (i) the application of SFDR to non-EU Alternative Investment Fund Managers (AIFMs) and registered (“below threshold”) AIFMs, (ii) the application of the 500-employee threshold for principal adverse impact reporting on parent undertakings of a large group, (iii) the meaning of promotion in the context of products promoting environmental or social characteristics (Article 8), including questions on the naming policy, a possible requirement for a minimum share of eligible investments in order to qualify as article 8 products or questions on exclusion policies (iv) the application of article 9 of SFDR including questions on the use of an EU Climate Transition Benchmark or EU Paris-aligned Benchmark and (v) the application of SFDR product rules to MiFID portfolios and other tailored products.


13 January 2021:

ESMA reminds firms of the rules on reverse solicitation

The European Securities and Markets Authority (ESMA) issued a public statement to remind firms of the MiFID II rules that apply in case of reverse solicitation, i.e. when the product or service is marketed at the client´s own exclusive initiative. Background to this statement is that according to ESMA with the end of the UK transition period on 31 December 2020 some firms appeared to be using certain practices in an attempt to circumvent MiFID II requirements. 


22 January 2021:

Luxembourg Grand Ducal Decree updates list of participating jurisdictions and reportable jurisdictions under CRS

The Grand Ducal Decree updated the list of Participating Jurisdictions within the meaning of Annex I, Section VIII, point D 5) of the amended Law of 18 December 2015 on the Common Reporting Standard (CRS) . The same Decree has also amended the list of Reportable Jurisdictions for reporting in relation to the year 2020 and subsequent calendar years. (The text is in French only.)


1 February 2021:

ESMA publishes final report on standardised information to facilitate cross-border distribution of funds

ESMA  published  a final report on implementing technical standards (ITS) under the regulation on cross-border distribution of funds. The ITS focus on the publication of information by national competent authorities (NCAs) on their websites, the notification of information by NCAs to ESMA and the publication of information by ESMA on its website.

The draft ITS set out in this final report have been submitted to the European Commission for  endorsement. From the date of submission, the European Commission shall take a decision on whether to adopt the ITS within three months. The Commission may extend that period by one month.


1 February 2021:

ESMA announces CSA on MiFID II product governance rules

The European Securities and Markets Authority (ESMA) announced a Common Supervisory Action (CSA) on the application of MiFID II product governance rules. ESMA will perform it together with National Competent Authorities in the course of 2021. The CSA is intended to help ensuring consistency regarding the implementation and application of EU rules and enhancing investor protection.


3 February 2021:

European Supervisory Authorities publish final report and draft RTS on disclosures under SFDR

The European Supervisory Authorities (ESAs) submitted the revised Regulatory Technical Standards (RTS)  concerning the PRIIPs Regulation to the European Commission. While some national competent authorities at EIOPA’s Board continued to express reservations on the draft RTS, they supported the proposal based on further details provided by the European Commission on their approach to the broader review of PRIIPs Regulation, namely that the review will thoroughly examine the application of the PRIIPs framework, including:

  • How to achieve better alignment between PRIIPs, Insurance Distribution Directive and Markets in Financial Instruments Directive II regarding provisions on costs disclosure;
  • The scope of products as foreseen by the PRIIPs Regulation;
  • How to ensure that the KID contains the key information necessary for retail investors while avoiding too much or too complex information for these investors;
  • How to allow the creation of a digitalised KID allowing layered information and reviewing the default paper basis of the KID, taking into account the specific challenges for different types of products (e.g. multi-option products (MOPs));
  • The need for a more tailored approach, such as for MOPs, in order to maximise understanding and use of the information, while continuing to allow for comparability of similar products.

Following the submission to the European Commission, the ESAs draft RTS is now subject to adoption. If adopted by the European Commission, the RTS would be subject to non-objection by the European Parliament.


4 February 2021:

European Supervisory Authorities publish final report and draft RTS on disclosures under SFDR

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) has delivered to the European Commission (EC) the Final Report, including the draft Regulatory Technical Standards (RTS), on the content, methodologies and presentation of disclosures under the EU Regulation on sustainability-related disclosures in the financial services sector (SFDR).


18 February 2021:

CSSF releases a revised notification form for NAV calculation errors and investment breaches in accordance with CSSF Circular 02/77

The CSSF published on its website a revised notification form to be used for the transmission of NAV calculation errors or non-compliances with investment rules in accordance with Circular CSSF 02/77, and  an additional guidance document in relation to the revised notification form.


23 February 2021:

CSSF simplifies the submission process for a new sub-fund

The CSSF informed the fund industry about a new form to be filled in when requesting approval of a new sub-fund under an existing fund structure. This specific application questionnaire further standardises the information necessary for the examination of the application.

For further information, please contact:

Tobias Ettlin
m: +352 691 111 931


Disclaimer: This regulatory update has been prepared for clients of ONE group solutions and its subsidiaries for informational purposes and is not intended to be relied upon as professional advice. Please visit:

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