ALCO reminder

1. Reminder: Documents to be provided by CI, IF, PSF or IFM to the CSSF on an annual basis

Scope: Investment Fund Managers incorporated under Luxembourg law

Regulatory reference: CSSF Circular 18/698 https://www.cssf.lu/wp-content/uploads/cssf18_698eng.pdf

 

CSSF FAQ on the topic: FAQ-IFM-documents.pdf (cssf.lu)

What: List of closing documents to be provided yearly

  • BoD/Comex Minutes (with points concerning AML/CTF) 

  • Proof of yearly AML Training (for all employees, comex & board members (only recommended for the latter, not obligatory) 

  • Financial statements (1 month after the AGM, max. 7 months after year end) (if not available on 31 May 2022, it is suggested to include a blank page informing the CSSF that the concerned document will be submitted at a later stage but within the set deadline)

  • Management Letter (no later than 7 months after year end) (if not available on 31 May 2022, it is suggested to include a blank page informing the CSSF that the concerned document will be submitted at a later stage but within the set deadline)

  • Report on the permanent risk management function

  • Report containing information giving a true picture of the types of financial instruments used for each managed UCITS, the underlying risks, the quantitative limits and the methods chosen for assessing the risks associated with transactions in derivative instruments (ManCo)

  • Report on the compliance function (point 318 of CSSF Circular 18/698); (please note the GT40 of the ALCO issue an updated template for this report which is available to members on the ALCO website) -> should include the Teleworking report in line with CSSF Circular 21/769!

  • Report on the internal audit function

  • Report of the AML/CFT compliance officer at the management level (point 260 of CSSF Circular 18/698); (please note the GT40 of the ALCO issued an updated template for this report which is available to members on the ALCO website)

  • Handling of complaints: a table including the number of complaints registered by the professional, classified by type of complaints, as well as a summary report of the complaints and of the measures taken to handle them; (difference for banks/PSF)

  • List of third parties authorised to handle complaints

  • Risk management procedure

  • Organisation chart of the group (if changed)

  • Summary table of the mandates of the members of the management body/governing body, the conducting officers and, where appropriate, of the members of the supervisory board

  • Annual list of all the delegates of the IFM, including the intermediaries ensuring marketing with whom the IFM has a direct relationship;

  • Report on the activity of the branch

  • Final calculation of the capital ratio of IFMs authorised to carry out discretionary management

 

Deadline: within five months following the end of the financial year of the IFM at the latest. As a majority of IFM have the end of the financial year on 31/12, for these IFM, the effective deadline will be 31/05/2022.

Scope: Credit institutions, Investment Firms & PSF

Regulatory references: MiFID, CSSF Regulation 12-02, as amended; CSSF Circular 18/698[1], CSSF Circular 19/712 and CSSF Circular 20/758[2]

 

What: List of closing documents to be provided yearly

  • Report on the compliance function should include the Teleworking report in line with CSSF Circular 21/769!

  • Annual risk assessment on AML/CTF

  • Report on the internal audit function

  • Annual Authorised Management report

  • MiFID report

  • Fraud report PSD2 (BCL reporting)

 

Deadline: within five months following the end of the financial year of the CI/IF/PSF at the latest. As a majority of CI, IF or PSF have the end of the financial year on 31/12, for these CI, IF or PSF, the effective deadline will be 31/05/2022.

 

[1] Circular 18/698 is not applicable to PSF except for specific provisions on the fight against money laundering and terrorist financing applicable to investment fund managers and entities carrying out the activity of registrar agent (5.4.2)

[2] Circular 20/758 is normally not applicable to PSF but general principles on governance, internal organisation, internal controls and reporting are applied to PSF and shall be respected

 

2. Reminder: Real estate levy

 

Source: https://www.cssf.lu/en/2022/04/real-estate-levy-deadline-for-filing/?utm_campaign=email-220406-f4015

 

Scope: The legislative measure applies to the following entities having a legal personality distinct from that of their partners and which are not incorporated as a société en commandite simple (limited partnership):

  • Undertakings for collective investment (UCIs) subject to Part II of the Law of 17 December 2010 relating to UCIs, as amended

  • Specialised investment funds (SIFs) referred to in the Law of 13 February 2007 relating to SIFs, as amended

  • Reserved alternative investment funds (RAIFs) referred to in Article 1 of the Law of 23 July 2016 on RAIFs, as amended

 

What: Filing of statements in respect of the real estate levy. Nil report to be filed even if nothing to declare!

 

Deadline: The statements must be submitted by 31 May 2022 at the latest.

 

3. Reminder: Data collection on commercial Real Estate

 

Regulation: The ESRB has issued a recommendation in 2016 on closing real estate data gaps (ESRB/2016/14), which has been amended in 2019 by the ESRB recommendation ESRB/2019/03. These recommendations contain the set of indicators that need to be collected by national authorities. Reminder: CSSF

 

Scope: Investment Fund Managers (IFM) who manage funds with an exposure to the real estate market (*). The definition of commercial real estate has been revised. The funds subject to the reporting should meet the following cumulative conditions:

  • The funds managed by the IFM are LU regulated or unregulated investment funds, excluding UCITS set up under part I of the law dated 17 December 2010

  • The LU funds have, according to their reporting, a predominant strategy defined as “Real Estate”

  • The LU funds are neither funds of real estate funds (irrespective of the country of domiciliation of the target funds) nor feeder funds investing in a master domiciled in Luxembourg

  • The LU funds have a direct or indirect exposure to the commercial real estate market, defined as follows:  “Commercial real estate means any income-producing real estate, either existing or under development, including rental housing or real estate used by the owners of the property for conducting their business, purpose or activity, either existing or under construction”.

 

(*) : The data collection is currently limited to the entities that are fulfilling the above-mentioned conditions. All IFMs concerned by the “Data collection on commercial real estate” should have been directly contacted by the CSSF per email.  The related questionnaire is then available under the concerned IFM e-desk account.

 

Deadline: 20/05/2022

 

How: Via eDesk. If nothing to declare, a nil report must be communicated.

 

What: Second round of the data collection exercise focusing on the financing of the commercial real estate sector by investment funds.

 

Guidelines: FAQ on the Data collection on Commercial Real Estate for Investment fund managers

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