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ARTICLE · 29 OCTOBER 2020

NAV Calculation Error And Investment Breaches

ELVINGER HOSS PRUSSEN, société anonyme
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The CSSF clarifies its expectations in relation to CSSF Circular 02/77 on NAV calculation error and investment breaches.

LuxembourgFinance and Banking
Elvinger Hoss Prussen
Elvinger Hoss Prussen

The CSSF clarifies its expectations in relation to CSSF Circular 02/77 on NAV calculation error and investment breaches.

An FAQ in relation to the provisions set out in CSSF Circular 02/77 concerning the protection of investors in case of NAV calculation error and correction of the consequences resulting from non-compliance with the investment rules applicable to UCIs was published on 7 July 2020 on the CSSF website.

This FAQ applies to UCITS and Part II UCIs1. It also outlines the principles to be applied by SIFs.

As part of the organisational requirements of the investment fund managers ("IFMs"), the CSSF requests the latter to put in place robust policies, processes and procedures governing the treatment of NAV calculation errors and investment breaches. In this respect, the CSSF further requires that a detailed policy is established and implemented by the IFMs and approved by their board of directors and, if applicable, the board of directors of the

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