AIF performance fees

Performance fees: New online CSSF declaration for investment fund managers regarding performance fee model

Further to its communication on 22 September 2021, the Luxembourg Regulator (Commission de Surveillance du Secteur Financier, CSSF) informed the investment fund managers (IFMs) of the launch of a new e-desk module on performance fees as of 30 September 2021. The purpose of such a new module is to ensure compliance with the European Securities and Markets Authority’s guidelines on performance fees applicable to UCITS and certain types of AIFs (ESMA Guidelines) and to collect standardized key information concerning performance fees. Indeed as of 30 September 2021, all funds with a financial year ending between July 2021 and 31 December 2021 will be available in the performance fee module. The IFMs will be required to transmit the performance fee declaration and the confirmation of compliance with the ESMA Guidelines via e-desk. For such funds, the deadline for submission of the initial declarations is 30 November 2021. The same will apply for funds with a financial year ending between 1 January 2022 and 30 June 2022 as from January 2022. The deadline for submitting the initial declaration will be at the latest before the corresponding closing date of each fund, as further specified in the IFM corresponding performance fee e-Desk dashboard.

Funds and sub-funds that are not subject to a performance fee will have to be declared accordingly as well as funds that have not yet been launched since having been approved by the CSSF or which are inactive following the full redemption of their shares or units.

IFMs will also be responsible for ensuring that performance fee declarations are kept up to date in case of changes (e.g., the introduction of a performance fee for the first time after that date or changes in performance fee models). A specific update function will be made available shortly by the CSSF under the new e-Desk module to send electronically any such changes in parallel to the transmission of the modified prospectus/issuing document.

For any further questions, feel free to contact our investment management team.