On July 18th 2014 the Commission de Surveillance Du Secteur Financier ("CSSF") published an updated version of its frequently asked questions ("Updated FAQ") concerning the Luxembourg law of July 12th 2013 on an alternative investment fund managers ("AIFM Law") as well as the Commission Delegated Regulation (EU) No231/2013 of December 19th 2012.
Two new questions have been added and one general question has been amended in the Updated FAQ. The amended question relates to reporting by non-EU AIFMs marketing AIFs in Luxembourg. The Updated FAQ clarifies that:
- a non-EU AIFM will have to report to the CSSF Only in the case where it is marketing to professional investors in Luxembourg; " the information to be reported should only cover the data for those AIFs that are marketed in Luxembourg;
- the date of the information form provided to the CSSF prior to the commencement of marketing (see below) is considered as the start date for the reporting period; and
- the reporting frequency and periods for non EU-AIFMs are the same as those applicable to Luxembourg AIFMs.
The first new question (Q17.) deals with initial capital, own funds requirements and coverage of potential professional liability risks applicable to AIFMs. The Updated FAQ sets out the exact initial capital and own funds required for either a chapter 15 Manco with a licence as AIFM or an external AIFM which does not hold a licence as a Chapter 15 Manco (i.e.Chapter16 Mancos or other Luxembourg based AIFMs).
The second question (Q 18.) relates to the marketing of AIFs to professional investors in Luxembourg without a passport by non-EU AIFMs on the basis of article 45 of the AIFM Law. The CSSF confirmed that non-EU AIFMs are allowed to do so provided that the conditions of article 45 of the AIFM law are met, but such non-EU AIFMs have to:
- inform the CSSF prior to any marketing activity using the information form that has been made available on the CSSF's website;
- communicate to the CSSF the end-date of marketing activity in Luxembourg; and
- report to the CSSF periodically in accordance with article 24 of the AIFM Directive.
The full text of the Updated FAQ is available at: http://www.cssf.lu/en/aifm.
The information form can be downloaded from the website of the CSSF at: http://www.cssf.lu/en/supervision/ivm/aifm/forms.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.