CSSF confirms rules on risk management and conflict of interest for non-authorised SIFs, non-authorised SICARs must set-up/adapt their conflict of interest rules by 31 March 2016

 

1-On 7 January 2016, the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (“CSSF”), released CSSF regulation n°15-07 applying to certain specialised investment funds (“SIFs”) governed by the amended law of 13 February 2007 on SIFs (“2007 Law”).

That regulation, dated 31 December 2015, concerns the risk management and conflicts of interests rules for those SIFs which are not subject to Part II of the 2007 Law (“CSSF Regulation n°15-07”).

It hence applies only to those SIFs which either benefit from an exemption to, or are merely registered under, the AIFMD. SIFs (or their AIFMs) authorised under the AIFMD are not concerned.

CSSF Regulation n°15-07 provides for risk management and conflict of interests rules similar to those currently in force. Prima facie, no action will be required.

As it was published in the official gazette on 13 January 2016, it will enter into force on 1st February 2016 and will cancel and replace CSSF regulation n°12-01.

 
2-On 7 January 2016, the CSSF also released CSSF regulation n°15-08 applying to certain investment companies in risk capital (“SICARs”) governed by the amended law of 15 June 2004 on SICARs (“2004 Law”).

That regulation, also dated 31 December 2015, introduces conflicts of interests rules (as opposed to risk management requirements) for those SICARs which are not subject to Part II of the 2004 Law (“CSSF Regulation n°15-08”).

It hence applies only to those SICARs which either benefit from an exemption to, or are merely registered under, the AIFMD. SICARs (or their AIFMs) authorised under the AIFMD are not concerned.

As it was published in the official gazette on 13 January 2016, it will enter into force on 1st February 2016.

By 31 March 2016, the SICARs concerned must set-up/adapt their conflict of interest rules, eventually adapt their issuing document and/or communicate with the CSSF.

Please do not hesitate to contact us. We will be glad to guide you through the different regulations and their application to your particular case.

Kind regards,

Max Welbes