Archives Post Timelines
SIF REGISTERED AIFM - SEPTEMBER
GOVERNANCE | REGULATORY | AML/CFT | AUDITOR
GOVERNANCE
Annual review of the data protection policy, security measures, GDPR registry of processing.
REGULATORY
BLC reporting:
Circular BCL 2014/237 and Circular BCL 14/588
Information regarding each compartment of the fund
non- MMF:
monthly statistical report composed of:
I. S 1.6 «Information on valuation effects on the balance sheet of non-MMF investment funds». This report shall be submitted 20 days from the end of the month it refers to
II. Monthly security-by-security report of investment funds.
a) The balance sheet line
b) The identification code of the security
c) The identification of the issuer
d) The type of holding of securities
e) The quantity of securities
f) Supplementary information for securities not identified by an ISIN code.
This report shall be submitted 20 days as from the end of the month it refers to.
MMF investment funds
I. S 1.3 «Monthly statistical balance sheet for money market funds»
This report shall be submitted 10 days as from the end of the month it refers to. Same content as the quarterly report for non-MMF.
II. Monthly Security by security report of investment funds. This report shall be submitted 10 days as from the end of the month it refers to. Same content as the non -MMF security by security report.
Financial information to the CSSF via CCLux:
Circular 07/310 and Circular 15/627
Information transmitted by the central administration of the SIF.
Monthly information: the reference will be the last day of every month (for SIFS that compute their net asset value at least on a weekly basis. For this latter category of SIFs, the reference date can be that of the last calculation day of the monthly net asset value.
The SIF have 10 days from the end of the period to submit their report. The SIF must submit a separate report for each compartment. The reports do not need to be consolidated.
Financial information to the CSSF via CCLux:
Circular 07/310 and Circular 15/627
Information transmitted by the central administration of the SIF.
Monthly information: the reference will be the last day of every month (for SIFS that compute their net asset value at least on a weekly basis. For this latter category of SIFs, the reference date can be that of the last calculation day of the monthly net asset value.
Monthly information includes, inter alia:
I. General information on the report and the sender
II. General information on the UCI
III. Financial information on the UCI in the base currency of the UCI
IV. General information on the unit/share class
V. Financial information on the unit/share class for the reference month
VI. Information on investment income and expenses for the reference month in the base currency of the UCI (To replicate)
The SIF have 10 days from the end of the period to submit their report. The SIF must submit a separate report for each compartment. The reports do not need to be consolidated.
AML/CFT
AUDITOR
SIF REGISTERED AIFM - JULY
GOVERNANCE | REGULATORY | AML/CFT | AUDITOR
GOVERNANCE
REGULATORY
BLC reporting:
Circular BCL 2014/237 and Circular 14/588
Information regarding each compartment of the fund
non-MMF:
monthly statistical report composed of:
I. S 1.6 «Information on valuation effects on the balance sheet of non-MMF investment
funds». This report shall be submitted 20 days from the end of the month it refers to
II. Monthly security-by-security report of investment funds.
a) The balance sheet line
b) The identification code of the security
c) The identification of the issuer
d) The type of holding of securities
e) The quantity of securities
f) Supplementary information for securities not identified by an ISIN code.
This report shall be submitted 20 days as from the end of the month it refers to.
MMF investment funds
I. S 1.3 «Monthly statistical balance sheet for money market funds»
This report shall be submitted 10 days as from the end of the month it refers to. Same content as the quarterly report for non-MMF.
II. Monthly Security by security report of investment funds. This report shall be submitted 10 days as from the end of the month it refers to. Same content as the non-MMF security by security report
The BLC can grant non-regulated funds derogation for the monthly and quarterly reporting if the total assets (all the compartments included) remain under 500 million EUR.
The reports are transmitted to the BCL and the CSSD via e-file.
Financial information to the CSSF via CCLux:
Circular 07/310 and Circular 15/627
Information transmitted by the central administration of the SIF.
Monthly information: the reference will be the last day of every month (for SIFS that compute their net asset value at least on a weekly basis. For this latter category of SIFs, the reference date can be that of the last calculation day of the monthly net asset value.
Monthly information includes, inter alia:
I. General information on the report and the sender
II. General information on the UCI
III. Financial information on the UCI in the base currency of the UCI
IV. General information on the unit/share class
V. Financial information on the unit/share class for the reference month
VI. Information on investment income and expenses for the reference month in the base currency of the UCI (To replicate)
The SIF have 10 days from the end of the period to submit their report. The SIF must submit a separate report for each compartment. The reports do not need to be consolidated.
Audited annual report of the AIFM (beginning of the delay)
one month following the AGM which has approved the annual accounts of the AIFM and at the latest seven months after the closing date of the financial year of the AIFM.
AML/CFT
AUDITOR
SIF REGISTERED AIFM - JUNE
GOVERNANCE | REGULATORY | AML/CFT | AUDITOR
GOVERNANCE
Annual general meeting within 6 months to approve the annual accounts and publication with the Trade and Companies Register (RCS) during the month of their approval in one of the official languages of Luxembourg or in English.
REGULATORY
BLC reporting:
Circular BCL 2014/237 and Circular 14/588
Information regarding each compartment of the fund
non-MMF:
monthly statistical report composed of:
I. S 1.6 «Information on valuation effects on the balance sheet of non-MMF investment funds». This report shall be submitted 20 days from the end of the month it refers to
II. Monthly security-by-security report of investment funds.
a) The balance sheet line
b) The identification code of the security
c) The identification of the issuer
d) The type of holding of securities
e) The quantity of securities
f) Supplementary information for securities not identified by an ISIN code.
This report shall be submitted 20 days as from the end of the month it refers to.
MMF investment funds
I. S 1.3 «Monthly statistical balance sheet for money market funds»
This report shall be submitted 10 days as from the end of the month it refers to. Same content as the quarterly report for non-MMF.
Monthly Security by security report of investment funds. This report shall be submitted 10 days as from the end of the month it refers to. Same content as the non-MMF security by security report
The BLC can grant non-regulated funds derogation for the monthly and quarterly reporting if the total assets (all the compartments included) remain under 500 million EUR.
The reports are transmitted to the BCL and the CSSD via e-file.
Financial information to the CSSF via CCLux:
Information transmitted by the central administration of the SIF.
Annual information: Report to be submitted 6 months from the closing day of the balance sheet. The report is drawn up separately for every compartments. The reports do not need to be consolidated.
This report includes inter alia:
I. Net assets
a) Total assets
b) Total liabilities
c) Net assets at the end of the year
II. Operations
a) Total income
b) Total charges
c) Net investment income
d) Profit or loss on operations
III. Changes in net assets
a) Net assets at the beginning of the year
b) Net assets at the end of the year
IV. Changes in the investment portfolio
a) Total purchases of transferable securities and other investments
b) Total sales of transferable securities and other investments
V. Breakdown of the securities portfolio and of liquid assets other than cash at bank
VI. Countries in which the SIF is marketed
Annual Report :
The report must be made available to the investors within 6 months of the end of the financial year(or within four months for close ended found admitted to Luxembourg stock exchange). Such report must be communicated to the CSSF. The report must include :
I. Statement of assets and liabilities ( investments, bank balances, other assets, total assets , liabilities, NAV)
II. Number of shares or units in circulation
III. NAV per share or unit
IV. Quantitative and/or qualitative information on the investment portfolio informing the investors on the development of the activities and the results of the SIF
V. Statement of the developments (income from investments, other income, management charges, depositary’s charges, other charges and taxes, net income, distributions and income reinvested, increase or decrease of capital account, appreciation or depreciation of investments, any other changes Any other changes affecting such section.
VI. A comparative table covering the last three financial years and including, for each financial year, at the end of the financial year (the total NAV and the NAV per share or unit)
AML/CFT
AML/CFT External Reports (AIFM):
The AML/CFT external report is prepares by the statutory auditor in charge of the audit of the annual account of the AIFM. Submitted by the RR or by the RR or by any member of the board of Directors/Managers via edesk of the supervised entity in scope (here the AIFM) on an annual basis at the latest six months after the closing date of the financial year of the AIFM. The CSSF AML/CFT report is divided into two sections that cover key AML/CFT controls of the IFM. The first section concerns the corroboration of answers given by AIFMs regarding the CSSF annual AML/CFT online survey, whereas the second section is dedicated to sample testing or specific work to be performed by the independent auditor.
AUDITOR
Management letter (Circular 21/790):
The Management letter to be submitted by the SIF or an authorized user of the AIFM within six months after the end of the financial year of the SIF.
The management letter shall include :
a) An important weakness or a point needing improvement communicated to whom it concerns in accordance with: o ISA 260 “Communication with those charged with governance”;
b) ISA 265 “Communicating deficiencies in internal control to those charged with governance and management”;
c) any other weakness or point needing improvement which, based on the professional judgement of the statutory auditor, is of sufficient importance to be brought to the attention of the SIF’s dirigeants or the CSSF.
Each weakness must be commented by the SIF’s dirigeants.
The SIF can rely on duly formalised arrangements (e.g. written board resolutions, contractual agreements), on the support of service providers (e.g. investment fund manager, other service providers) for (i) gathering all the necessary information/data and filling in the M and (ii) submitting the management letter prepared by the statutory auditor The dirigeants can also complete and submit the ML on their own. Must be submitted via edesk
SIF REGISTERED AIFM - MAY
GOVERNANCE | REGULATORY | AML/CFT | AUDITOR
GOVERNANCE
REGULATORY
BLC reporting:
Circular BCL 2014/237 and Circular 14/588
Information regarding each compartment of the fund
non-MMF:
monthly statistical report composed of:
I. S 1.6 «Information on valuation effects on the balance sheet of non-MMF investment funds». This report shall be submitted 20 days from the end of the month it refers to
II. Monthly security-by-security report of investment funds.
a) The balance sheet line
b) The identification code of the security
c) The identification of the issuer
d) The type of holding of securities
e) The quantity of securities
f) Supplementary information for securities not identified by an ISIN code.
This report shall be submitted 20 days as from the end of the month it refers to.
MMF investment funds
I. S 1.3 «Monthly statistical balance sheet for money market funds»
This report shall be submitted 10 days as from the end of the month it refers to. Same content as the quarterly report for non-MMF.
II. Monthly Security by security report of investment funds. This report shall be submitted 10 days as from the end of the month it refers to. Same content as the non-MMF security by security report
The BLC can grant non-regulated funds derogation for the monthly and quarterly reporting if the total assets (all the compartments included) remain under 500 million EUR.
The reports are transmitted to the BCL and the CSSD via e-file.
Financial information to the CSSF via CCLux:
Circular 07/310 and Circular 15/627
Information transmitted by the central administration of the SIF.
Monthly information: the reference will be the last day of every month (for SIFS that compute their net asset value at least on a weekly basis. For this latter category of SIFs, the reference date can be that of the last calculation day of the monthly net asset value.
Monthly information includes, inter alia:
I. General information on the report and the sender
II. General information on the UCI
III. Financial information on the UCI in the base currency of the UCI
IV. General information on the unit/share class
V. Financial information on the unit/share class for the reference month
VI. Information on investment income and expenses for the reference month in the base currency of the UCI (To replicate)
The SIF have 10 days from the end of the period to submit their report. The SIF must submit a separate report for each compartment. The reports do not need to be consolidated.
AML/CFT
AML/CFT RC report (by the AIFM):
Article 42 (6) and (7) of the CSSF Regulation No 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing.
The compliance officer (RC) shall prepare, at least once a year, a summary report on his activities and his operation. This summary report shall be submitted by the RC to the person responsible for compliance, the authorized management and the board and, where appropriate, the specialized committees. Once a year on its activities and operations, the report must be approved by the management body and send to the CSSF no later than 5 months after the end of the financial year of the AIFM.
AUDITOR
SIF REGISTERED AIFM - MARCH
GOVERNANCE | REGULATORY | AML/CFT | AUDITOR
GOVERNANCE
REGULATORY
BLC reporting:
Circular BCL 2014/237 and Circular 14/588
Information regarding each compartment of the fund
non-MMF:
monthly statistical report composed of:
I. S 1.6 «Information on valuation effects on the balance sheet of non-MMF investment funds». This report shall be submitted 20 days from the end of the month it refers to
II. Monthly security-by-security report of investment funds.
a) The balance sheet line
b) The identification code of the security
c) The identification of the issuer
d) The type of holding of securities
e) The quantity of securities
f) Supplementary information for securities not identified by an ISIN code.
This report shall be submitted 20 days as from the end of the month it refers to.
MMF investment funds
I. S 1.3 «Monthly statistical balance sheet for money market funds»
This report shall be submitted 10 days as from the end of the month it refers to. Same content as the quarterly report for non-MMF.
II. Monthly Security by security report of investment funds. This report shall be submitted 10 days as from the end of the month it refers to. Same content as the non-MMF security by security report
The BLC can grant non-regulated funds derogation for the monthly and quarterly reporting if the total assets (all the compartments included) remain under 500 million EUR.
The reports are transmitted to the BCL and the CSSD via e-file.
Financial information to the CSSF via CCLux:
Circular 07/310 and Circular 15/627
Information transmitted by the central administration of the SIF.
Monthly information: the reference will be the last day of every month (for SIFS that compute their net asset value at least on a weekly basis. For this latter category of SIFs, the reference date can be that of the last calculation day of the monthly net asset value.
Monthly information includes, inter alia:
I. General information on the report and the sender
II. General information on the UCI
III. Financial information on the UCI in the base currency of the UCI
IV. General information on the unit/share class
V. Financial information on the unit/share class for the reference month
VI. Information on investment income and expenses for the reference month in the base currency of the UCI (To replicate)
The SIF have 10 days from the end of the period to submit their report. The SIF must submit a separate report for each compartment. The reports do not need to be consolidated.
AML/CFT
AUDITOR
AIFMD II - Conclusion
The amendments and additions provided by the Commission proposal, the European Parliament draft report, and the Council position should lead to the strengthening and growth of the European alternative investment fund sector. They should help to make capital more accessible in Europe and, without wholesale changes to the AIFMD is not rewritten, some areas could have a significant impact on AIFMs. The level 2 legislation should also provide additional clarity. We expect AIFMD II to come into force in 2025.
Please do not hesitate to contact founding partner Olivier Sciales - we can provide you with further information and assistance in understanding the Commission proposal, European Parliament draft report and Council position, or AIFMD II more generally.
AIFMD II - The Council position - Miscellaneous
The Council position clarifies the use of the terms shares and shareholders with additional references to units and unitholders, as the European Parliament draft report does.
The Council position refers to the term liquidity management tools, not liquidity management instruments, as the European Parliament draft report does.
The notification obligations of the regulatory authorities concerning their cooperation obligation are also developed in the Council Proposal with the same approach as the European Parliament draft report, particularly regarding the notification of the ESRB if there are potential risks to the stability and integrity of the financial system.
All information exchanged under the AIFMD between ESMA, national regulatory authorities, the EBA, EIOPA and the European Systemic Risk Board is no longer considered confidential if the information disclosed is used in a summary or in an aggregate form in which individual financial market participants cannot be identified. This change relating to the confidentiality of some information is the same as that included in the Commission proposal and the European Parliament draft report.
The disclosure of derogations to the European Commission is broadened by the Council position with the derogation or option of articles 15.3 (risk management by loan-originating AIFs) and 15.4aa (leverage of a loan-originating AIF) included in the list of derogations to be disclosed to the Commission. Member states may choose to include derogations relating to these two articles when they transpose AIFMD II into national law. The European Commission will make information relating to these derogations public. Neither the Commission proposal nor the European Parliament Draft Report modifies the disclosure of derogations to the European Commission.
Access the European Council position of June 2022 here.
AIFMD II - European Parliament draft report - Miscellaneous
Clarification of the use of the terms shares and shareholders with additional references to units and unitholders. Use of the term liquidity management tools in appendix V, rather than liquidity management instruments.
ESMA should follow a risk-based approach in carrying out its functions under the AIFMD. Neither the Commission proposal nor the Council position includes such a provision.
All information exchanged under the AIFMD between ESMA, NCAs, EBA, EIOPA, and the ESRB is not considered confidential anymore where the information disclosed is used in a summary or in an aggregate form in which individual financial market participants cannot be identified. This change relating to the confidentiality of some information is the same as the one inserted in the Commission proposal.
The regulatory authorities of the home member state of an AIFM shall notify the regulatory authorities of the host member state of the AIFM and ESMA before exercising the new powers relating to the activation or deactivation of an LMT by AIFMs, in particular, non-EU AIFMs that are marketing in the Union AIFs that they manage or EU AIFMs managing non-EU AIFs. The regulatory authorities of the host member state of the AIFM may request the competent authority of the home member state of the AIFM to exercise such powers specifying the reasons for the request and notifying ESMA. The ESRB should also be notified by the regulatory authorities of the host member state of the AIFM provided that there is a potential risk to the stability and integrity of the financial system. The difference with the Commission proposal is that the ESRB should be notified only if there is a potential risk to the stability and integrity of the financial system. The draft RTS to be developed by ESMA shall recognise the primary responsibility of the AIFM for liquidity risk management and the fact that intervention by the regulatory authorities is a last resort.
Access the draft report of 16 May 2022 from the European Parliament here.
AIFMD II - European Commission proposed directive, November 2021 - Miscellaneous
The threshold for the regulatory authorities of one member state to notify ESMA and the authorities of the home and host member states of an AIFM suspected of carrying out acts contrary to the AIFMD is lowered to reasonable grounds, but still restricted to acts committed by an AIFM, as discussed above in the Depositaries section.
All information exchanged under the AIFMD between ESMA, national regulatory authorities, the EBA, EIOPA and the European Systemic Risk Board is no longer considered confidential if the information disclosed is used in a summary or in an aggregate form in which individual financial market participants cannot be identified.
Use of the term liquidity management instruments in appendix V, rather than liquidity management tools.
The regulatory authorities of an AIFM’s home member state shall notify the authorities of the host member state of the AIFM, ESMA and the ESRB before exercising powers relating to the activation or deactivation of an LMT by AIFMs, in particular, non-EU AIFMs that are marketing AIFs that they manage in the EU, or EU AIFMs managing non-EU AIFs. The regulatory authorities of of the AIFM may request the competent authority of the home member state of the AIFM to exercise such powers specifying the reasons for the request and notifying ESMA and the ESRB thereof. The Commission proposal includes a procedure regarding the process to be followed with such notifications, under which ESMA would draw up draft RTS indicating the situations and processes relating to such notification.
You can access a copy of the directive proposed by the European Commission here.
AIFMD II - The Council position - Investor protection
An AIFM should provide information on the instruments in which it is trading, markets of which it is a member or where it actively trades, and the exposures and holdings of each AIF it manages, along with relevant identifiers to connect the data provided on assets, AIFs and AIFM to other supervisory or publicly available data sources. The disclosure of the exposure and holdings of each AIF is broader than the existing AIFMD, the Commission proposal and the European Parliament draft report, which refer to “principal exposures” (AIFMD) and “exposures” (Commission proposal and Parliament report), but not to the holdings of each AIF. The reference to “relevant identifiers to connect the data provided on assets, AIFs and AIFM” is also new compared to the Commission proposal and the European Parliament draft report.
Although the obligation to report to the regulatory authorities information on the main categories of assets in which the AIF is invested is deleted in the Commission proposal, the Council position replaces this requirement with the following:
Obligation to report information on delegation arrangements that involve the delegation of collective or discretionary portfolio management or risk management functions as follows:
- Information on delegates, specifying their name and domicile, whether they have close links with the AIFM, and whether they are authorised or regulated entities for asset management. The information should include relevant identifiers of the delegates to connect the information provided to other supervisory or publicly available data sources.
- A list and description of activities relating to risk management and portfolio management functions that are delegated.
- Where the portfolio management function is delegated, the amount and percentage of the AIF’s assets which are subject to delegation arrangements.
- The number of full-time equivalent human resources employed by the AIFM to monitor delegation arrangements.
- A description of periodic due diligence measures carried out by the AIFM to oversee, monitor and supervise the delegate, including the date of performance of these measures, issues identified and, where relevant, measures and timeline adopted to address these issues.
- Where sub-delegation arrangements are in place, information required in points (i) to (iii) on the sub-delegates and activities related to the portfolio and risk management functions that are sub-delegated.
- The commencement and expiry dates of delegation and sub-delegation arrangements. Some information included in the other relevant economic and accounting information in the European Parliament draft report is not included in the Council position, such as reporting of the total amount of leverage of the net assets employed by the AIF.
The Council position has added the following reporting obligation to the regulatory authorities: the list of member states in which the units or shares of the AIF are marketed by the AIFM or by a distributor acting on behalf of that AIFM. However, the Council position shortens the current obligation to report the current risk profile of the AIF and the risk management systems employed by the AIFM to the current risk profile of the AIF only. Neither the Commission proposal nor the European Parliament draft report includes such provisions.
AIFMs should, for each EU AIFs that they manage and for each AIF that they market in the EU, disclose to investors:
- The originated loan portfolio.
- On an annual basis, all direct and indirect fees and charges directly or indirectly charged or allocated to the AIF or any of its investments.
- On an annual basis, any parent company, subsidiary or special purpose entity established in relation to the AIF’s investments by the AIFM, its staff or direct or indirect affiliates.
The difference from the Commission proposal is the frequency of such disclosure, annually in the Council position and the European Parliament draft report, but quarterly in the Commission proposal.
Access the European Council position of June 2022 here.
