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ARTICLE · 15 JUNE 2021

Application Of MiFID To Luxembourg IFMs

Arendt & Medernach
Arendt & Medernach
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Arendt & Medernach

Arendt & Medernach

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On 10 June 2021, the CSSF published an FAQ on the application of the markets in financial instruments directive ("MIFID") to Luxembourg investment fund managers ("IFMS")...

LuxembourgFinance and Banking
Camille Bourke
Camille Bourke
Florence Stainier
Florence Stainier
Florent Denys
Florent Denys
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ON 10 JUNE 2021, THE CSSF PUBLISHED AN FAQ ON THE APPLICATION OF THE MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE (“MIFID”) TO LUXEMBOURG INVESTMENT FUND MANAGERS (“IFMS”), WHICH WILL CONSEQUENTLY TRIGGER UPDATES TO THE CSSF'S FAQS ON THE LAW OF 17 DECEMBER 2010 ON UCIS (THE “2010 LAW”) AND ON THE LAW OF 12 JULY 2013 ON AIFMS (THE “2013 LAW”).

The CSSF clarifies under what circumstances and the extent to which MiFID rules apply to IFMs, their third-party delegates and their investment advisers.

Among the clarifications provided, the following information is key:

Collective Portfolio Management – Application of MiFID or exemption?

While the performance of collective portfolio management functions by a UCI or IFM does not fall in-scope of the MiFID rules, that is no longer the case where these functions are entrusted to a delegate: going forward, the exemption will cease to apply where such functions are (i) undertaken by an authorised IFM under a delegation

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