On 19 April 2018, the law implementing PRIIPs was published in the Luxembourg official gazette (Mémorial). The draft bill was submitted to the Chambre des Députés on 25 October 2017 [see our article here].
As PRIIPs came as a regulation, this law does not bring any changes to the text.
By this law, the Commission de Surveillance du Secteur Financier (CSSF) and of the Commissariat aux Assurances (CAA) are designated as the authorities competent for the supervision of the compliance with the PRIIPs Regulation at a national level. As such, they are vested with controlling and investigation powers.
The law also indicates the administrative sanctions and the administrative measures at the disposal of the CSSF and the CAA in case of breaches. These range from the suspension of the marketing of a PRIIPs to dissuasive fines: up to 5.000.000 euros or 3% of the revenues for moral person; up to 700.000 euros for physical person.
The law also gives the possibility to the CSSF and the CAA to require prior notification of the KID by the manufacturer to its Competent Authority.
Moreover SICARs and UCIs other that UCITS are allowed to prepare a UCITS KIID instead of a PRIIPs KID as long as the document expressly mentions that the product that is sold is not a UCITS. By making use of the UCITS KIID, these vehicles are exempted from the PRIIPS Regulation until 31 December 2019.
The text of the PRIIPs law is available via this web link.
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.