Luxembourg’s CSSF publishes FAQs on the application of MiFID to Investment Fund Managers

On 10 June 2021, the Commission de Surveillance du Secteur Financier (CSSF) published Frequently Asked Questions (FAQs) on the application of MiFID to Luxembourg Investment Fund Managers (IFMs). The CSSF FAQs aim to clarify under what circumstances and to what extent MiFID applies to IFMs, their third-party delegates and their investment advisers.

The new FAQs on the application of MiFID to IFMs, have been included in the two following CSSF FAQs lists:

1. FAQs concerning Luxembourg Law of 17 December 2010 relating to undertaking for collective investment - here - section 10, providing clarification and necessary guidance to questions such as:

• Do IFMs and UCIs qualify as clients under MiFID?
• How should the exemption from MiFID for UCIs and their IFM foreseen under article 2(1) (i) MiFID be understood?
• When does the service rendered by third parties to IFMs fall within the scope of MiFID?
• Do MiFID rules apply to the performance of functions included in the collective portfolio management by another delegate IFM?
• Do MiFID rules apply to the marketing of funds?
• Do MiFID rules apply when an IFM delegates the marketing to another IFM?
• Which MiFID investment services may be considered as marketing of funds?
• Is investment advice included in the activity of collective portfolio management?
• Do MiFID rules apply to investment advisors when they provide investment advice to an IFM?
• Are IFMs authorised to provide investment advice to another IFM?
• Which MiFID exemptions may apply to third parties providing investment services to IFM?

2. FAQs concerning the Luxembourg Law of 12 July 2013 on Alternative Investment Fund Managers - here - section 26, providing advice by answering questions such as:

• Do IFMs and UCIs qualify as clients under MiFID?
• How should the exemption from MiFID for UCIs and their IFM foreseen under article 2(1) (i) MiFID be understood?
• When does the service rendered by third parties to IFMs fall within the scope of MiFID?
• Do MiFID rules apply to the performance of functions included in the collective portfolio management by another delegate IFM?
• Do MiFID rules apply to the marketing of funds?
• Do MiFID rules apply when an IFM delegates the marketing to another IFM?
• Which MiFID investment services may be considered as marketing of funds?
• Is investment advice included in the activity of collective portfolio management?
• Do MiFID rules apply to investment advisors when they provide investment advice to an IFM?
• Are IFMs authorised to provide investment advice to another IFM?
• Which MiFID exemptions may apply to third parties providing investment services to IFMs?

IFMs are expected to comply with the CSSF FAQs as soon as possible and by 31 December 2021 at the latest.

The press release can be found here.