The CSSF’s frequently asked questions (“FAQ”) on AIFMs was updated on August 14th 2018 with an additional question 23.b) in the section Impact of the PRIIPs Regulation.
The question raised was whether Luxembourg AIFs the units of which are being advised on, offered or sold to retail investors benefit from the exemption provided under Article 32(2) of the PRIIPs Regulation if they have issued a UCITS KIID?
The answer is yes such AIFs may issue a UCITS KIID in order to be exempted from the obligations of the PRIIPs Regulation until December 31st 2019, provided that the following conditions are complied with:
- the UCITS KIID to be issued under the law of December 17th 2010 on undertakings for collective investment in transferable securities, as amended (the Law of 2010) should comply with Articles 159 to 162 of the Law of 2010, as well as with the provisions of Commission Regulation (EU) No. 583/2010;
- the UCITS KIID should be issued for each retail share class of the sub-funds of the relevant Luxembourg AIF;
- the offering document of the Luxembourg AIF should be amended so it reflects the distribution of a UCITS KIID to all retail investors that would invest in the AIF.
The offering document should also mention that the UCITS KIID shall be published on the website of the registered or authorised AIFM of the Luxembourg AIF and that it shall be available, upon request, in paper form.
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