LUX - Monitoring action on asset valuation
Asset managers' processes must comply with ESMA's recommendations following its monitoring actions on costs and fees charged to investment funds (2022 report) and on the valuation of UCITS and AIF assets (2023 report).
In January 2022, ESMA launched another supervisory action on asset valuation under the UCITS and AIFM Directives: the aim is to ensure that asset valuation methods for UCITS and AIFs are reviewed at least once a year, and more frequently depending on market conditions. Internal valuation methods are preferred for unlisted assets. In July 2023, the Luxembourg regulator CSSF issued a reminder of the actions to be taken by fund managers by December 31, 2023: to analyse their asset valuation systems and criteria, and implement the necessary measures.
The CSSF intends to carry out sporadic controls and on-site visits to verify whether and how asset managers are considering the recommendations of ESMA and the Luxembourg regulator.