REGULATORY CLIENT UPDATE / OCTOBER 2021
The CSSF announced a new requirement for IFMs to make a performance fee declaration for Luxembourg regulated UCITS and AIFs they manage.
Luxembourg Market Update:
Last year was a success for Luxembourg’s fund industry despite the impact of the Covid-19 pandemic, with net assets rising 5.2% to €5.02trn at the end of December, or by 14.8% to $6.15trn in US dollar terms, according to the 27th annual Monterey Insight Luxembourg Fund Report. In 2020, UCITS assets grew by 15.7% and those of alternative funds by 11.7%. Luxembourg investment fund assets reached €5.65trn at the end of August, according to the CSSF.
Regulatory Developments in and beyond Luxembourg:
22 September 2021: New CSSF eDesk module concerning performance fees
The CSSF invited Investment Fund Managers (IFMs) to declare performance fee models applicable to Luxembourg UCITS or AIF they manage via a newly dedicated eDesk application. This exercise aims at ensuring compliance with the ESMA Guidelines on performance fees in terms of proper disclosures and collecting standardised key information in relation to performance fees.
After the initial declaration (for example the introduction of a performance fee) and in case of updates (for example changes in performance fee models), the IFM will also be responsible to ensure that performance fee declarations are kept up-to-date.
A CSSF form is now available for all Funds whose financial year is ending between July 2021 and December 2021. As from January 2022, the form will be requested for Funds whose financial year is ending between January 2022 and June 2022. The deadline for submission of the initial declaration will be at the latest before the corresponding closing date of each fund as further specified in the IFM’s performance fee eDesk dashboard.
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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: https://www.one-gs.com/
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