LUX - CSSF circular concerning the processing of NAV errors for Luxembourg-based funds
On 28 March 2024, CSSF Circular CSSF 24/856 was published. It will enter into force on 1 January 2025 and will replace CSSF 02/77 (applying to UCITS and UCI subject to part II of the 2010 law and concerning the treatment of NAV calculation errors).
The main changes are:
Alternative Investment Funds will enter the scope of this new CSSF circular.
Compliance breaches would include breaches to art. 8 or 9 of the SFDR.
Review/assessment of contracts signed with data vendors in case of pricing error.
3 pages dedicated to corporate governance.
Proportionality process (type /number of investors, countries of distribution, amount)
Notification to fund investors where the fund is distributed with a possible look-through approach.
New and recurrent oversight process after a NAV error.
Strengthening of investor protection thanks to a prospectus update.
This CSSF circular will enter into force on 1 January 2025 and replace the old one (CSSF 02/77 applying to UCITS and UCI subject to part II of the 2010 law and concerning the treatment of NAV calculation errors). Although Circular CSSF 24/856 is currently only available in French, an English version will be published soon.