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ARTICLE · 08 AUGUST 2019

CSSF Published FAQ Concerning Swing Pricing Mechanism

KPMG Luxembourg
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On 30 July 2019, the Commission de Surveillance du Secteur Financier (CSSF) published a FAQ on the topic of swing pricing mechanism.

LuxembourgFinance and Banking
Gabrielle Jaminon
Gabrielle Jaminon
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On 30 July 2019, the Commission de Surveillance du Secteur Financier (CSSF) published a FAQ on the topic of swing pricing mechanism.

The principles outlined below apply to all regulated funds in Luxembourg (UCITS, UCI part II, SIF) which apply the swing pricing mechanism (hereafter "UCI").

Articles of incorporation, management regulations

The CSSF confirmed that the articles of incorporation or the management regulations of a UCI should permit adjustments to the net asset value in order to counter the dilution effects of capital activity.

Changes that would be required in the prospectus should be included at the next update.

Prospectus

In regards to the prospectus of a UCI, the following items in relation to the application of the swing pricing mechanism should be included as a minimum:

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