On 22 December 2021, the Commission de Surveillance du Secteur Financier (CSSF) published Circulars 21/788, 21/789 and 21/790 aiming to improve the Risk-Based Supervision of the CSSF, for prudential and AML/CFT purposes regarding investment fund managers (IFMs) and undertakings for collective investment (UCIs).

In particular:

• Circular CSSF 21/788introduces a new CSSF AML/CFT external report to be prepared by the approved statutory auditor (réviseur d’entreprises agréé), applicable as from the first time as at year end 31 December 2021 for all Luxembourg investment fund managers including registered AIFMs and all Luxembourg investment funds supervised by the CSSF for AML/CFT purposes.
• Circular CSSF 21/789introduces the following requirements and regulatory framework for all authorised IFMs, SIAGs and FIAAGs:
  • Are required to complete a self-assessment questionnaire (SAQ) on an annual basis.
  • The approved statutory auditor (réviseur d’entreprises agréé) is required to review on an annual basis certain questions of the SAQ and to complete on that basis a separate report.
  • This circular also defines a specific regulatory framework applicable to the management letter to be prepared on an annual basis by the approved statutory auditor of an authorised IFM.
  • The above requirements and regulatory framework will be applicable for the first time as at year end 31 December 2021.

• Circular CSSF 21/790introduces the following regulatory requirements and regulatory framework for UCITS, UCIs subject to part II of the Law of 17 December 2010, Specialised Investment Funds (SIFs) and Investment Companies in Risk Capital (SICARs) (the “regulated UCIs”):
  • Are required to complete on an annual basis the SAQ and to communicate certain information to the CSSF in case the approved statutory auditor (réviseur d’entreprises agréé) issues a modified audit opinion in the context of the statutory audit of the regulated UCI.
  • The approved statutory auditor is required to review on an annual basis certain questions of the SAQ and to complete on that basis a separate report.
  • This circular also defines a specific regulatory framework applicable to the management letterto be prepared on an annual basis by the approved statutory auditor of a regulated UCI.
  • The above requirements will be applicable as of the financial years ending 30 June 2022, with a phased implementation for the separate report as further specified in the circular.

With the entry into force of the provisions of the Circular CSSF 21/790 as of the financial year ending 30 June 2022, Circular CSSF 02/81 on the practical rules concerning the task of auditors of UCIs will be repealed.

The completion of all the above-mentioned reports are to be performed using the CSSF eDesk platform.

CSSF’s official publication and the Circulars can be found here.