SIFs And SICARs To Be Impacted By New CSSF Regulations

Two new regulations recently released by the CSSF will have a significant impact on regulated investment vehicles in Luxembourg. These regulations specify rules on risk management and conflict of interest policies for SIFs and SICARs. Adopted on the last day of last year, the regulations were published in the Official Gazette on 13 January 2016 and are bound to enter into force on 1 February 2016.

Do the regulations apply to all types of SIFs and SICARs?

No, the regulations only apply to the following SIFs / SICARs:

SIFs / SICARs managed by a registered alternative investment fund manager (AIFM); or SIFs / SICARs managed by a manager benefiting from an exemption to get authorized or to register by virtue of the Law of 12 July 2013 on alternative investment fund managers (the AIFM Law); SIFs / SICARs which do not qualify as alternative investment funds (AIFs) according to the rules set out in the AIFM Law. SIFs / SICARs managed by an AIFM authorized as per the AIFM Law or the AIFM Directive 2011/61/UE are not subject to this CSSF regulation.

What measures do 'in scope' SIFs and SICARs need to take?

For SIFs, the CSSF regulation sets out criteria to be used in the assessment of the adequacy of their risk management systems. It also specifies de minima criteria for the detection of conflicts of interest, together with guidelines on the policies, processes and measures the SIF must implement in order to avoid as much as possible the conflicts of interest. Existing SIFs, who were subject to the 2012 regulation, are required to review their...