Luxembourg law implementing EuVECA and ELTIF regulations and amending RAIF law
The Law of 16 July 2019 implementing the regulations on EuVECA, EuSEF, ELTIF and MMF (the “Regulations”) and amending the RAIF law entered into force on 22 July 2019 (the “Law of 16 July 2019”).
Although these Regulations are directly applicable to the EU member states, they do allow certain provisions to be regulated on a national level. In view of this, the Law of 16 July 2019 introduces inter alia the following:
Implementation of the EuVECA, EuSEF, MMF and ELTIF regulations
- Designation of the CSSF as the competent authority in respect of the proper application of the EuVECA, EuSEF, ELTIF and MMF regulations and describes the administrative sanctions that the CSSF could impose in case of breaches of these regulations;
- Designation of the CSSF as competent authority in respect of securitization regulation and specific power of supervision to the “Commissariat Aux Assurances” (the “CAA”) for ensuring the respect of the obligations laid down in articles 6 to 9 of the regulation 2017/2402/UE. Therefore, the CAA takes care of the correct application of the risk retention (article 6), the transparency requirements (article 7), the ban on resecuritisation (article 8) and the criteria for credit-granting (article 9) concerning the originator, the original lender of a securitisation or the securitisation special purpose entity (“SSPE”) established in Luxembourg.
Amendment of the RAIF law
Finally, the Law of 16 July 2019 amends the RAIF Law by introducing the possibility to modify a common fund (“FCP”) RAIF into a SICAV RAIF. Additionally, FCP-RAIFs may be managed by Luxembourg management companies authorised pursuant to chapters 15, 16 or 18 of the law of 17 December 2010 relating to undertakings for collective investment.
The law of 16 July 2019 can be accessed here.
CSSF press release on guidance in relation to EuVECA regulation
Since 22 July 2013, Regulation (EU) No 345/2013 of 17 April 2013 on European venture capital funds or Regulation (EU) No 346/2013 of 17 April 2013 on European social entrepreneurship funds apply to managers of collective investment undertakings that wish to use the designation “EuVECA” in relation to the marketing of qualifying venture capital funds or the designation “EuSEF” in relation to the marketing of qualifying social entrepreneurship funds in the European Union.
In this context, the Commission de Surveillance du Secteur Financier (CSSF) is the competent authority for managers established in Luxembourg to whom the regulations apply and who wish to opt-in under the aforementioned regulations.
Managers who wish to obtain the designation “EuVECA” or “EuSEF” in relation to the marketing of their funds are invited to inform the CSSF of their intention and to provide the CSSF in writing with the information that is required in Article 14 respectively 15 of the regulations.
The regulations are available under:
http://ec.europa.eu/internal_market/investment/venture_capital/index_en.htm ; and under
http://ec.europa.eu/internal_market/investment/social_investment_funds/index_en.htm
Managers have to communicate this information to the CSSF by using the following email address: aifm@cssf.lu.
Please note that the managers concerned also need to register on the basis of Article 3 of the law of 12 July 2013 on alternative investment fund managers. For practical guidance in respect of such registration procedure, please refer to CSSF’s Press Release 13/32.
