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ARTICLE · 23 SEPTEMBER 2024

Update Of CSSF FAQ On UCITS Law

Chevalier & Sciales
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On 30 November 2023, the CSSF released its latest update of the FAQ regarding the Law of 17 December 2010 on undertakings for collective investment (the "2010 Law), originally published on 8 December 2015.

LuxembourgFinance and Banking
Chevalier & Sciales
Chevalier & Sciales
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On 30 November 2023, the CSSF released its latest update of the FAQ regarding the Law of 17 December 2010 on undertakings for collective investment (the "2010 Law), originally published on 8 December 2015. This 16th version aims to clarify key aspects of UCITS from a Luxembourg perspective, addressing management companies and UCITS established in Luxembourg.

The updated FAQ delves into the "ancillary liquid assets" concept, assets that UCITS are permitted to hold under Article 41(2)b) of the 2010 Law. Notably, it includes updates to Questions 1.14 and 1.15.

The FAQ outlines that ancillary liquid assets for UCITS should be limited to bank deposits at sight, such as cash held in current accounts that are accessible at any time. These assets are meant to cover current or exceptional payments, or for the time necessary to reinvest in eligible assets under Article 41(1) of the 2010 Law, or for a period strictly necessary during unfavorable market conditions.

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