On March 23 the Luxembourg Financial Supervisory Authority issued CSSF Circular 15/608, addressed to all banks acting as depositaries of UCITS funds under the grand duchy’s investment funds legislation of December 17, 2010 as well as to all Luxembourg funds or their management company, regarding a change in the deadline for compliance with the regulator’s earlier Circular 14/587 as well as advance notice of future modifications.

Given that the rules regarding UCITS depositaries as modified by the UCITS V directive (which also covers remuneration rules and sanctions) are due to be transposed by EU member states at the latest by March 18, 2016, and that the depositary provisions of the directive will be fleshed out by delegated legislation that may not be issued until the third quarter of this year, the CSSF has ruled that funds, depositaries and managers will have until March 18 of next year to become compliant.

The change is set out in an amended paragraph 187 of Circular 14/587, while also states that chapter E of the venerable Luxembourg Monetary Institute circular IML 91/75 will cease to apply from that date.

The CSSF has also given notice that in due course it will implement a further change to Circular 14/587 in order to adapt it to the depositary measures set out in UCITS V and its Level II measures. This amendment will also take effect on March 18, 2016.