On April 19th, the law of April 17th 2018 on key information documents for packaged retail investment and insurance products (formerly draft Law 7199) (the “Law”) was published in the Official Journal of Luxembourg. The law implements provisions of Regulation (EU) No. 1286/2014 (the “Regulation”) and amends the law of December 17th 2010 on UCITS (“UCITS Law”).
The Law outlines administrative sanctions and measures in relation to non-compliance with the Regulation. It sets out the investigatory powers of the Commission de Surveillance du Secteur Financier (CSSF) and the Commissariat aux Assurances (CAA) as the competent authorities and fixes the maximum and minimum sanctions and fines which can be imposed under the Regulation.
In compliance with provisions of the Regulation the Law includes an express article allowing SICARs and undertakings for collective investment that are not UCITS, to draw up a key investor information document in compliance with Directive 2009/65/CE and provides that in such case those funds are exempted from the provisions of the Regulation until 31/12/2019. The UCITS Law is amended as a result.