The CSSF issues a reminder to UCI Administrators on contract obligations and new annual reporting requirements under Circular CSSF 22/811.
Contractual compliance: essential elements and disclosures
The CSSF's recent 3 September communiqué underlines the importance of compliance with the contractual provisions outlined in Circular CSSF 22/811 for UCI Administrators (UCIAs). Points 38 and 39 of the circular define the mandatory elements that contracts between UCIAs and UCIs (undertakings for collective investment) and/or IFMs (investment fund managers) must include.
Key requirements include:
- a comprehensive description of the services, functions, and tasks covered by the contract;
- clear articulation of the roles, rights, and obligations of each party;
- obligations regarding confidentiality and specified notice periods for changes.
While updates to UCIA contracts do not require prior submission to the CSSF, the regulatory body retains the right to request and review these contracts on a case-by-case basis.
Additionally, the communiqué highlights Point 41 of the circular, which mandates that the name of the UCIA must be disclosed in the offering document of any UCI for which it acts. In instances where multiple entities are involved in the administration process, it is imperative that all entities are named, and their respective roles and functions are clearly identified.
New annual reporting module: deadlines and requirements
In line with the broader regulatory framework, the CSSF has introduced a new annual reporting module for UCI Administrators. The CSSF reminds the industry that under the provisions of Circular CSSF 22/811, UCIAs are required to submit the requested information within five months of the relevant financial year-end.
Failure to meet these deadlines could result in increased scrutiny or regulatory action.
For further information, you can access the full press release here.
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