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Regulatory Blog

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Key guidelines of CSSF Circular 24/856 on Investor Protection (NAV errors/breach of investment restrictions and other errors)
As a reminder, on 28 March 2024, Luxembourg’s Commission de Surveillance du Secteur Financier issued Circular 24/856 providing comprehensive guidelines for the protection of investors in cases of errors related to the Net Asset Value calculation, non-compliance with investment rules and other administrative errors at the level of Undertakings for Collective Investment under the supervision of CSSF. An English version of the circular has recently been released.
CySEC announces new requirement for Crypto-Asset Service Providers
On 30 July 2024, the Cyprus Securities and Exchange Commission issued Circular 654 addressed to CIFs, AIFMs, and UCITS Management Companies intending to offer crypto-asset services and providing an update following Circular 648.
ESMA seeks input on Liquidity Management Tools for funds
On 8 July 2024, the European Securities and Markets Authority initiated a consultation on draft guidelines and technical standards under the revised Alternative Investment Fund Managers Directive and the Undertakings for Collective Investment in Transferable Securities Directive. These directives aim to enhance financial stability and standardise liquidity risk management across the investment funds sector.
ESMA seeks feedback on UCITS Eligible Assets Directive review
On 7 May 2024, the European Securities and Markets Authority issued a Call for Evidence regarding the review of Commission Directive 2007/16/EC on UCITS eligible assets. This initiative is part of the European Commission's request for ESMA to provide technical advice on the UCITS EAD review.
AIFMD II published in the Official Journal of the European Union
On 26 March 2024, Directive (EU) 2024/927 amending the Alternative Investment Fund Managers Directive 2011/61/EU and the Undertaking for Collective Investment in Transferable Securities Directive 2009/65/EC was published in the Official Journal of the European Union.
CSSF updates FAQ for guidelines for UCIs investing in Virtual Assets
On 22 February 2024, the Commission de Surveillance du Secteur Financier revised its FAQ on Virtual Assets for Undertakings for Collective Investment relating to the promotion of UCIs engaged in direct or indirect investment in virtual assets.
The European Parliament has adopted the AIFMD 2.0 text
On 7 February 2024, the European Parliament adopted the final version of the text amending the Alternative Investment Fund Managers Directive (AIFMD 2.0).
CySEC's Circular on forced transfers of Russian securities
On 11 September 2023, the Cyprus Securities and Exchange Commission (CySEC) issued Circular 596 regarding Russian Federation Federal Laws No. 319-FZ (Law 319-FZ) and No. 519-FZ (Law 519-FZ), which concern certain transfers of Russian securities, known as forced transfers, further defined below.
EU reaches provisional agreement on AIFMD II and UCITS “plain-vanilla EU investment funds”
On 20 July 2023, negotiators from the European Council and the European Parliament reached a provisional agreement on new regulations aimed at improving European capital markets and strengthening investor protection in the EU. The agreement focuses on revising the Alternative Investment Fund Managers Directive (AIFMD), broadly referred to as AIFMD II, which governs managers of various investment funds including hedge funds, private equity funds, and real estate funds in the EU. Additionally, it modernises the framework for “plain-vanilla” EU-harmonised retail investment funds known as undertakings for collective investment in transferable securities (UCITS).
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