CSSF Updates AIFMD Q&A

• Jurisdiction: Luxemburgo
• Date: 15 November 2016

On 9 June 2016, the Commission de Surveillance du Secteur Financier (CSSF) issued an updated version - number 10 - of its Questions & Answers (Q&A) document on the Alternative Investment Fund Managers Directive (AIFMD).

The update introduces guidance on loan origination by AIFs in Luxembourg. The CSSF confirms that the loan origination activity is permitted for AIFs in Luxembourg since neither the law transposing the AIFMD (AIFM Law) nor the different product laws applying to alternative funds, if applicable, forbid such activity. Certain specific EU product regulations such as the European Long Term Investment Funds (ELTIF), the European Venture Capital Funds (EuVECA) and the European Social Entrepreneurship Funds (EuSEF) regulations, even explicitly allow these AIFs to originate loans.

Funds engaging in loan origination activities must comply with the AIFM Law and where applicable, with their respective product laws.

The CSSF places emphasis on the necessity for the AIFM or, where applicable, the AIF itself, to address all aspects and risks of the loan origination activity. They should also:

Rely on an adequate organisational and governance-structure, Hire sufficient staff with the required expertise and experience in the activity and have adequate technical resources in place; Establish a strong risk...