On 3 January 2017, the CSSF introduced by means of Press Release 17/01 a notification form to be used for the transmission of NAV calculation errors or non-compliance with investment rules in accordance with Circular CSSF 02/77 on the protection of investors in case of NAV calculation error and correction of the consequences resulting from non-compliance with the investment rules applicable to undertakings for collective investment (“CSSF Circular 02/77”).
The purpose of the Excel-based notification form was to collect all the information necessary for the CSSF in the context of its supervisory work concerning NAV calculation errors or non-compliance with investment rules.
Introduction of a revised version of the notification form
On 18 February 2021, the CSSF introduced a revised form of the notification with the aim of facilitating the filling of the form and to further streamline its content.
The changes brought to the form concern notably the introduction of additional drop-down menus (e.g. categorization of investment breaches), the removal of some data fields (e.g. share class specific information) or the addition of some data fields (notably on corrective measures implemented at the level of the fund for avoiding the re-occurrence of similar incidents in the future).
These changes will also allow the CSSF to improve the operational processing of the information contained in the notification form.
CSSF Circular 02/77 specifies that the CSSF should immediately be advised of the occurrence of a NAV calculation error or non-compliance with investment rules and that it should also be informed in that context about the related remedial action plan.
As a consequence, the CSSF expects that the organization of a UCI provides for a timely submission of the completed notification (i.e. in principle within 4 to 8 weeks following the detection of an incident with time-consuming calculations and within 4 to 6 weeks following the detection of an incident with less-time consuming calculations).
Completeness of the notification form and pre-notification
The CSSF expects notifying entities to fill in all the requested information as foreseen by the applicable data fields (including the information on the payment date of compensation) with the exception of the pre-notification forms.
Pre-notifications forms will only be accepted on an exceptional basis, in cases where it is justified that the calculations and compensation processes necessary to remediate and correct NAV calculation errors or non-compliances of investment rules are particularly complex and time-consuming. In such exceptional circumstances where the above timeline cannot be met, the CSSF accepts that the notifying entity will first submit (within 4 to 8 weeks) a pre-notification containing all information available at that time, before submitting, in a next and final step, the complete notification form with all required information.
While the CSSF insisted on the fact that notification forms shall provide concise information and that notification forms that have been modified by adding, deleting or changing the content of the template will not be accepted, the CSSF allows entities (given the limitations in terms of maximum number of characters of the Excel file), to provide further explanations/clarifications by means of a separate document. This document should be duly attached to the email used for the submission of the notification form and shall be named in a clear and precise way and must be attached to the notification form in all cases.
The revised notification form should be used with immediate effect and be sent electronically to firstname.lastname@example.org.
All explanations on the notification form can be found here.