On 13 May 2020, the CSSF published a communication announcing a notification obligation (the "IFM Notification") applicable to certain investment fund managers (the "IFMs") and relating to significant developments and issues in investment vehicles under their management. The IFM Notification is an extension of measures put in place by the CSSF on 10 March 2020, when it requested the biggest IFMs to notify similar information to the CSSF. The new procedure is applicable to a bigger number of the IFMs (but only to those directly contacted by the CSSF) and requires submission of the notification exclusively through the CSSF's eDesk Portal.
OBJECTIVE
The objective of the IFM Notification is to support the CSSF in preforming its day-to-day supervisory tasks and to allow it to detect and address any issues the IFMs encounter during current market conditions. It also serves as data necessary for discussion and cooperation with other authorities and key market players.
SCOPE
The IFMs are obliged to notify the following events:
- Significant Issues arising in the funds managed by an IFM:
- For Luxembourg-domiciled regulated investment funds (UCITS, Part II UCIs, SIFs, and SICARs) managed by a Luxembourg domiciled IFM - significant events and issues affecting the functioning of the fund caused by the current situation of market turbulence such as liquidity issues, significant valuation challenges (including delays of NAV calculation) or changes in valuation methods;
- For Luxembourg-domiciled non-regulated investment funds (eg. RAIFs) and for non-Luxembourg domiciled regulated and unregulated funds managed by a Luxembourg domiciled IFM - significant events and issues affecting the functioning of the fund caused by the current situation of market turbulence such as liquidity issues on the asset side, large redemptions, significant valuation challenges (including delays of NAV calculation), changes in valuation methods, suspensions, liquidations/mergers, etc.);
- For non-Luxembourg IFM managing Luxembourg-domiciled regulated funds - significant events and issues affecting the functioning of the fund caused by the current situation of market turbulence such as liquidity issues on the asset side, large redemptions, significant valuation challenges (including delays of NAV calculation), changes in valuation methods).
- Larger redemptions at the level of Luxembourg regulated investment funds (UCITS, Part II UCIs, and SIFs) managed by the IFM:
- daily net redemptions exceeding 5% of the NAV;
- net redemptions over a calendar week exceeding 15% of the NAV;
- application of gates/deferred redemptions.
SUBMISSION AND DEADLINES
The IFM Notification must be submitted through the CSSF's eDesk Portal and requires an eDesk account with the LuxTrust Certification. It applies as of 2 June 2020 until further notice from the CSSF.
Further guidance and details relating to the information to be submitted are provided in the user guide available on the eDesk Portal.
Information on key life cycle events in regulated funds (e.g. suspensions, liquidations, mergers, side pockets, change of dealing frequency) should continue to be provided to the CSSF via the usual communication channels;
SUSPENSION OF OTHER MEASURES
The CSSF also informed that with the announcement of the IFM Notification:
- reporting on early warning on large redemptions applicable to a limited number of UCITS contacted directly by the CSSF in the past is suspended until further notice;
- the specific monitoring of the largest investment fund managers, established on 10 March 2020, is repealed and replaced by the IFM Notification.
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