On 23 August 2018, the Commission de Surveillance du Secteur
Financier (CSSF) published Circular 18/698 (see our
blog article) on the authorization and organization of
investment fund managers incorporated under Luxembourg law. As part
of the document, the CSSF as supervisory authority outlines
requirements for Management Companies (ManCos) under the European
Market Infrastructure Regulation (EMIR). The Circular entered into
force directly with its publication.
Detailed requirements
EMIR requires ManCos to fulfill regulatory requirements in case
the funds under their management are counterparties to derivative
transactions. For this reason, the CSSF requires ManCos to have
documented corresponding processes and procedures. If a ManCo has
delegated these (risk management) processes, it should instead have
procedures that guarantee the overview of the delegate. This is
especially important since the responsibility for (EMIR) compliance
remains with the ManCo.
