CSSF Publishes Frequently Asked Questions On Master-Feeder UCITS Structures

Luxembourg's financial regulator, the Financial Sector Supervisory Authority (CSSF), has published on June 24 a series of Frequently Asked Questions about master-feeder structures under the UCITS IV legislation, which came into effect in July 2011.

The issues raised cover both master and feeder funds domiciled in Luxembourg. The regulator says the FAQs will be regularly updated and that it may if need be change its approach or position with regard to some of the issues they deal with.

The questions dealt with by the document cover:

The identification and disclosure of matters to be treated as irregularities in the audit reports of master and feeder UCITS. How and where the combined charges of the master and feeder funds should be disclosed in the feeder's fund's annual report. How to assess the combined charges of the master and feeder UCITS when the funds have different financial...