LU - New CSSF circular about EMIR impact in the fund industry


On 23 August 2018, the “Commission de Surveillance du Secteur Financier” (CSSF) published Circular 18/698 on the authorization and organization of investment fund managers incorporated under Luxembourg law.

As part of the document, the CSSF as supervisory authority outlines requirements for Management Companies (ManCos) under the European Market Infrastructure Regulation (EMIR). EMIR requires ManCos to fulfill regulatory requirements in case the funds under their management are counterparties to derivative transactions. For this reason, the CSSF requires ManCos to have documented corresponding processes and procedures. If a ManCo has delegated these (risk management) processes, it should instead have procedures that guarantee the overview of the delegate. This is especially important since the responsibility for (EMIR) compliance remains with the ManCo. A comprehensive delegation overview encompasses the review of contractual documents, such as Service Line Agreements (SLAs), an initial due diligence of the delegate as well as the recurring monitoring of delegated activities. The EMIR section ends with the communication that all documentation must be available to the CSSF upon demand.

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