On 23 December 2020, CSSF published in the Memorial A the CSSF Regulation N° 20-10 laying down the modalities of the Law of 17 December 2010 on UCIs with regard to the marketing of “Foreign UCIs other than the closed-end type” to retail investors in Luxembourg.
Scope of application
The regulation is applicable to the “Foreign UCIs other than the closed-end type” wishing to market their units/shares to retail investors in Luxembourg. For the purpose of this regulation, “Foreign UCIs other than the closed-end type” (herein after “Foreign UCIs”) means UCIs other than UCITS and other than UCIs for which there is no redemption right for investors.
Foreign UCIs which comply with the following rules are eligible for marketing to retail investors in Luxembourg:
Marketing authorization by the CSSF and notification procedure
Before Foreign UCIs can be considered for eligibility to market to Luxembourgish retail investors, the UCIs must be managed by a manager who is subjected to prudential regulation and supervision in its home state. Foreign UCIs must also get the authorization from the CSSF and be listed on the CSSF’s website.
Specificities for AIF under the AIFMD 2011/61/UE: these funds should first complete the notification procedure for professional investors, as defined in the Law of 12 July 2013 (art. 45).
The Notification File to be submitted to the CSSF must combine a certain number of documentation and information, such as:
Once the marketing approval is obtained, Foreign UCIs must inform the CSSF about any material change made to the above listed documents/information.
The documentation, NAV and subscription/redemption prices must be made available to the investors in French, German, English or Luxembourgish (website publication is allowed).
The CSSF must be informed as soon as a Foreign UCI wishes to terminate the marketing of its units/shares to retail investors in Luxembourg, so that the Foreign UCI can be removed from the CSSF list of authorized funds.
Retail investors must be informed accordingly (in an official media in Luxembourg or through a website) and the Foreign UCI should retain facilities in Luxembourg for the purpose of payments/redemptions as long as there are retail investors.
The CSSF Regulation N° 20-10 of 21 December 2020 came into effect on 1st January 2021.
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