On 16 May 2022, Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), taking into consideration the growth in the field of UCI administration, released Circular 22/811 confirming administrative practice and requirements concerning governance and internal organisation.

This circular enters into force with immediate effect and applies to all entities acting as UCI administrators for regulated and non-regulated UCIs established, or not, in Luxembourg. However, a grandfathering period (until 30 June 2023), is granted to existing UCI administrators to meet the authorisation requirements.

The UCI administration activity covers three main functions: the registrar function, the NAV calculation and accounting function, and the client communication function as defined in section 2.2.2 of the circular.

An important change for many UCI administrators that delegate important functions to group companies in lower cost jurisdictions is that CSSF prior authorisation is replaced by prior notification in case of delegation of a critical or important operational task (pt 100-101 of the circular).

In particular, the circular implements a new reporting for UCI administrators (pt 7 of the circular & annex B). The reporting must be filed, for the first time, at the latest five months after their financial year-end, starting from 30 June 2023 (pt 104 of the circular).

CSSF’s press release can be found here.

Circular 22/811 can be found here.