LUX CSSF published Circular CSSF 24/856 on investor protection in the event of a NAV calculation error, investment rules non-compliance, other errors, replacing CSSF 02/77.
Follows On Jul. 7, LUX CSSF issued FAQs concerning CSSF circular 02/77, see #81521.
Summary
Updated circular follows numerous UCI industry regulatory developments since CSSF 02/77 was issued in 2002, e.g. UCITS/AIFM directives and specific product regulations.
Applies to UCITS, UCI Part II, SIFs, SICARs, plus ELTIF, MMF, EuVECA and EuSEF.
Sets investment manager guidelines in case of UCI administration/management errors.
In addition to NAV calculation errors and non-compliance with UCI investment rules, also covers other issues e.g. relating to payment of costs or fees, and swing pricing.
Defines an approach for different fund tolerance thresholds governing NAV calculation errors, and aims to clarify industry guidelines in the case of errors at UCI level.
Consolidates LUX CSSF guidance, FAQs, activity reports and administrative practices.
Is currently available in French only, with an English version due for publication shortly.
Effectiveness
Circular CSSF 24/856 comes into force on Jan. 1, 2025, when CSSF 02/77 is repealed.
In Dec. 2024, LUX CSSF issued UCI forms for NAV calculation errors, see #237602.
