CSSF Abolishes Luxembourg’s Promoter Approval Regime For UCITS

CSSF Abolishes Luxembourg's Promoter Approval Regime For UCITS

Luxembourg's Financial Sector Supervisory Authority (CSSF) has formally abolished the grand duchy's promoter approval rules applicable to the establishment of investment funds as part of new rules on the authorisation and organisation of management companies.

The new rules apply primarily to UCITS established under Luxembourg's 2010 fund legislation, but they also represent a step in the transition to the regime for non-UCITS funds set out in the European Union's Alternative Investment Fund Managers Directive.

The investor protection role formerly fulfilled by oversight of the promoter is henceforth deemed to be adequately carried out through the rules applicable to management companies that are embodied in CSSF Circular 12/546, which was published on October 24.