August 2018 has seen the Commission de Surveillance du Secteur Financier (CSSF) publishing a new questionnaire regarding compliance with the European Market Infrastructure Regulation (EMIR). An update to this questionnaire was published in September 2018.
Detailed requirements
This questionnaire becomes a mandatory document required for the authorization as new Alternative Investment Fund Manager (AIFM), Undertakings for the Collective Investment of Transferable Securities (UCITS) Management Company (ManCo) or Chapter 16 ManCo. For reasons of comprehensiveness, the questionnaire has also been sent to existing Investment Fund Managers (IFMs).
In the document, IFMs have to disclose their EMIR classification as well as the type of derivatives used as investment product. Afterwards, IFMs are questioned regarding their procedures to ensure that funds under their management comply with EMIR obligations (namely reporting, clearing and risk mitigation techniques).
In case of delegation of EMIR-related activities, IFMs have to testify adequate oversight arrangements including initial- and ongoing due diligence.
Increased attention
The questionnaire ties closely to the CSSF's circular 18/698 on the authorization and organization of IFMs incorporated under Luxembourg law. The EMIR section of the circular ends with the communication that all documentation must be available to the CSSF upon demand.
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.