Implementation of a specific monitoring of the largest investment fund managers
As a result of the prevailing market conditions relating to the current situation in Ukraine, the CSSF implemented on 25 February 2022 a specific monitoring of the largest investment fund managers (“IFM”) in view of the specific circumstances and risks to which these companies are exposed.
Aim of the monitoring
Through the information collected, the CSSF performs its daily supervision and uses the information as a basis to support discussions with other authorities and with market players to identify issues at an early stage and to assist with the resolution of these.
Who is concerned?
All IFM concerned by the notification on fund/IFM issues and/or large redemptions have been contacted by the CSSF.
For the IFM that have been contacted by the CSSF, some specific additional information has also been requested if the IFM manage individual (sub-)fund(s) with a combined direct or indirect exposure (including exposure gained through derivatives) exceeding 10% of their total net assets to Russian and/or Ukrainian issuers.
An IFM notification has to be transmitted to the CSSF via eDesk only if the following events occur:
- significant events/issues affecting the functioning of the IFM or the investment funds managed by the IFM (e.g. valuation, liquidity), including also the impact of restrictive measures in response to the current situation in Ukraine if applicable;
- larger redemptions at the level of Luxembourg regulated investment funds (UCITS, Part II UCI, SIF) managed by the IFM (i.e. daily net redemptions exceeding 5% of the NAV, net redemptions over a calendar week exceeding 15% of the NAV and/or application of gates/ deferred redemptions).
Further details on the IFM notification, the scope of application and additional explanations assisting IFM in filling in the notification are outlined in the dedicated section of the CSSF eDesk Portal homepage.
The IFM notification remains in place until further notice by the CSSF.
For a full access to the CSSF’s communication click here.