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CSSF publishes guidance on AIFM Directive for Luxembourg based managers

July 2013 - Finance. Legal Developments by Chevalier & Sciales .

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Luxembourg's financial regulator, the Financial Sector Supervisory Authority, has published practical guidance for alternative fund managers on how they should approach the issue of becoming registered or authorised under the Alternative Investment Fund Managers Directive, which was transposed into Luxembourg law through legislation that came into force on July 15. The CSSF says any entity established in Luxembourg that could potentially be categorised as an alternative manager under the new law must conduct a self-assessment of whether it qualifies, and if so, whether it will be subject to a requirement for registration or authorisation.

The Luxembourg legislation stipulates that the external manager of an alternative fund, or where relevant a self-managed fund itself, must be registered or authorised. Non-regulated alternative funds, vehicles structured as Part II funds under the grand duchy's 2010 investment funds law, Specialised Investment Funds and SICARs must all conduct a self-investment process to determine whether they qualify as self-managed funds (internal AIFMs) subject to registration or authorisation.

An entity that requires registration under the directive, falling outside the asset thresholds for full authorisation, must register with the CSSF immediately. Managers subject to authorisation must apply to the CSSF by July 22, 2014. Forms for registration or authorisation can be downloaded from the CSSF website at http://www.cssf.lu/aifm/.

All managers must comply with the reporting requirements set out in Article 3 of the Luxembourg law (for entities subject to registration) or Article 22 (those subject to full authorisation).

The CSSF says practical aspects of reporting and clarification on the information to be reported to the regulator as well as its timing, via the reporting template promised by Annex IV of the European Commission's Level 2 regulation published last December, are currently being finalised by the European Securities and Markets Authority. They should be made public before the end of the year.

Once Luxembourg-based alternative managers have conducted their self-assessment, they must report back to the CSSF at the latest by August 16 with information comprising the name and address of the manager, whether it is an external fund manager or a self-managed fund, and whether it is required to be registered or authorised by the CSSF, by e-mail to aifm@cssf.lu.

In our AIFM Directive blog on our website, we will continue to track and analyse progress toward the full implementation of the AIFM Directive, following the publication of the Level 2 regulation by the European Commission at the end of last year, including the progress of EU member states toward adoption of the primary legislation. 

 

Olivier Sciales

Chevalier & Sciales

Partner, Avocat Ă  la Cour

Route de Thionville 51

2611 Luxembourg 

Office: + 352 26 25 90 30

Fax: +352 26 25 83 88

Email: oliviersciales@cs-avocats.lu
website: www.cs-avocats.lu
Linkedin: http://www.linkedin.com/in/oliviersciales

AIMF Directive blog: http://www.cs-avocats.lu/category/aifm-directive/

Twitter: @oliviersciales