CSSF issues guidance on UCI and IFM obligations under the Amended EU Benchmarks Regulation

On 29 December 2025, the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), published a communication addressed to undertakings for collective investment (UCIs) and investment fund managers (IFMs) under its supervision that use benchmarks. The communication relates to obligations under the amended EU Benchmarks Regulation, as introduced by Regulation (EU) 2025/914 amending Regulation (EU) 2016/1011. The amended framework will apply from 1 January 2026 and has implications for Luxembourg investment funds and managers using benchmarks.

Background: amended EU Benchmarks Regulation

As indicated by ESMA, the revised EU Benchmarks Regulation aims to strike a balance between reducing the regulatory burden for administrators and users of benchmarks that are non-significant in the European Union, while safeguarding the integrity, robustness and reliability of benchmarks that remain within scope. The overarching objective continues to be a high level of consumer and investor protection across EU financial markets.

Significant narrowing of scope from January 2026

As from 1 January 2026, the scope of the EU Benchmarks Regulation will be substantially reduced. The regulatory regime will apply only to:

– critical benchmarks and significant benchmarks;
– EU Climate Transition Benchmarks;
– EU Paris-Aligned Benchmarks; and
– certain commodity benchmarks listed in Annex II of the Regulation.

Benchmarks classified as non-significant in the EU will fall outside the scope of the Regulation. This change is intended to reduce the regulatory burden for administrators and users of such benchmarks, while ensuring that the core regulatory requirements continue to apply to benchmarks that remain in scope.

Administrators of benchmarks that fall outside the scope of the Regulation may, subject to specific conditions, request the voluntary application of the regulatory framework (opt-in). In addition, administrators of EU Climate Transition Benchmarks and EU Paris-Aligned Benchmarks must be authorised, registered, recognised or endorsed, in order to ensure effective regulatory oversight and to prevent misleading ESG-related claims. The amended framework also introduces a specific exemption regime for certain spot foreign exchange benchmarks.

Timeline and ESMA implementation measures

The amended EU Benchmarks Regulation will apply from 1 January 2026. ESMA has published a timeline setting out the key milestones for implementation. In particular, UCIs and IFMs are dependent on updates to the ESMA register to clarify the status of benchmark administrators, as well as on the applicable transitional arrangements, including the opt-in regime.

Practical impact for UCIs and IFMs in Luxembourg

In light of the revised scope of the Regulation, the CSSF expects UCIs and IFMs qualifying as benchmark users to ensure compliance with the amended EU Benchmarks Regulation. In practice, this requires Luxembourg funds and managers to reassess the benchmarks they use and to identify whether those benchmarks remain in scope as critical, significant, climate-related or covered commodity benchmarks.

At the same time, the CSSF recognises that UCIs and IFMs are dependent on the update of the ESMA register and on related transitional arrangements. This dependency has been explicitly acknowledged by the CSSF in determining its supervisory expectations.

Prospectus updates and transitional approach

Where prospectus updates are required as a result of the revised benchmark regime, the CSSF expects such updates (if any) to be incorporated into the next update of the prospectus. This approach allows UCIs and IFMs to align documentation updates with existing review cycles.

Conclusion

The amended EU Benchmarks Regulation significantly narrows its scope from 2026, reducing the regulatory burden for non-significant benchmarks while maintaining regulatory oversight of critical, significant, climate-related and certain commodity benchmarks. Luxembourg UCIs and IFMs should reassess their benchmark usage in light of the revised scope, monitor ESMA register updates and transitional arrangements, and prepare any necessary prospectus updates in line with the CSSF’s stated expectations.

For further information or assistance in assessing benchmark compliance within your Luxembourg fund structure, please contact our investment funds team.