CSSF Circular 14/591 – Material Changes To UCIs

On July 22nd, the Commission de Surveillance du Secteur Financier ("CSSF") issued Circular 14/591 (the "Circular") on protection of investors in case of a material change to an open-ended undertaking for collective investment ("UCI"). The Circular sets out in print what the de facto position of the CSSF has always been in dealing with changes to open ended UCIs.

The purpose of the Circular is to clarify and set out the administrative practice when there is a material change to investors' interests in an open- ended UCI governed by the law of December 17th 2010 relating to UCIs, as amended. To assess whether a change will be a material one to their structure, organisation or operations, UCIs should:

consider whether the contemplated change has an impact on an investor's interest causing him to reconsider his investment, and submit the proposed change to the CSSF together with the reasons for such change. If the CSSF is of the view that such change is deemed material, then the CSSF requests that a notification be sent to investors and the change will be implemented only after the end of the notification period, which must be at least one month. The Circular also provides that the notification period is without prejudice to the notification periods required by law...

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