More rules impacting the non-UCITS depositary industry
A new Circular addressed to Luxembourg credit institutions, investment firms and certain professionals of the financial sector acting as depositaries for non-UCITS, will enter into force on 1 January 2019.
On 23 August 2018, the Luxembourg supervisory authority of the financial sector, the CSSF, published a new circular, Circular 18/697 (the “Circular”), which is addressed to Luxembourg credit institutions, investment firms and certain professionals of the financial sector acting as depositaries for non-UCITS. The majority of the rules set out in the new Circular supplement the Luxembourg AIFM Law and Commission Delegated Regulation (EU) 231/2013 with regard to depositaries (the “AIFMD level 2 measures”). They clarify the organisational requirements and the best practices to be followed by Luxembourg professionals when acting as depositaries.
The new Circular not only provides a set of regulatory requirements clarifying certain rules provided by the Luxembourg AIFM Law and the AIFMD level 2 measures, but also provides clarification on certain aspects beyond these rules by notably providing guidance to be followed by depositaries when servicing investment funds investing in some of the non-traditional assets (e.g. real estate, non-listed companies, tangible assets, financial derivative instruments, etc.).
The new Circular will enter into force on 1 January 2019.
Isabelle Lebbe is a Partner in the Investment Management practice of Arendt & Medernach. She specialises in a wide range of investment funds with a focus on regulated funds. She advises clients on the corporate, regulatory and tax aspects of the creation, marketing and operation of investment funds and management entities. In addition to advisory activities, Isabelle launched and supervises Arendt Institute, Arendt’s learning organisation which provides open courses through training agendas, digital modules and dedicated training programmes designed to meet the specific context of clients’ organisations. Isabelle also leads the diversity and sustainability initiatives within the Arendt Group...