CSSF FAQs On AIFMs And Non-AIFs SIF And SICARs: PRIIPs Impacts

On 6 July 2017 the CSSF published an updated version of its Frequently Asked Questions (FAQ) document on alternative investment fund managers (AIFM) and created a FAQ for SIFs and SICARs which do not qualify as AIFs.

The AIFM FAQ's latest issue highlights the impact of the PRIIPs Regulation on Luxembourg AIFs in the new Section 23. It clarifies the following aspects under points 23.a) to 23.q):

The obligation for Luxembourg AIFs advised on, offered or sold to retail investors to have in place a PRIIPs KID from 1 January 2018; The applicability until 31 December 2019 of the exemption provided by Article 32(2) of the PRIIPs Regulation (the exemption of Article 32(2)) to have in place a PRIIPs KID for Luxembourg AIFs sold to retail investors that already issue a UCITS KIID under condition of the related update of the prospectus.; The timescale for retail AIFs to draw up a PRIIPs KID; The exclusion of Luxembourg AIFs solely distributed to professional investors from the obligation to draw up a PRIIPs KID and the strong advice of the CSSF to update their offering documents to state that they solely target professional investors, although the CSSF foresees the possibility to receive a self-assessment form on the status of the AIF; The absence of obligation to provide a PRIIPs KID to retail investors outside of the EU/EEA, unless required by the third country; The absence of obligation to provide a PRIIPs KID to existing retail investors of a Luxembourg retail AIF if the fund is not distributed to any new retail investors; The obligation to draw up a PRIIPs KID for a Luxembourg retail AIF if an existing retail investor wishes to make an additional investment after 1 January 2018 except where he invests through a regular savings plan (periodic subscription) and unless changes are made to the subscription arrangements and a new subscription form is required; The CSSF only requires the notification of the final PRIIPS KID by the manufacturer...