CSSF provides practical guidance on UCITS KIID replacement

On 16 December 2022, the CSSF published an updated version of its FAQ on the Law of 17 December 2010 on undertakings for collective investment (UCIs) and provided practical guidance to the Luxembourg UCITS industry on how to introduce the PRIIPs KID.

In a nutshell, the additions to the FAQ can be summarised as follows:

• Manufacturers of Luxembourg UCITS made available to retail investors in the EU/EEA need to have a PRIIPs KID in place as of 1 January 2023, following the expiry of the exemption period provided for in Article 32(1) of Regulation (EU) 1286/2014 (PRIIPs Regulation).
  
  
• It will not be possible to file PRIIPs KIDs for UCITS with the CSSF before 1 January 2023 and no PRIIPs KID should be issued to investors in a UCITS prior to 1 January 2023.
  
  
• PRIIPs KIDs for UCITS can be filed with the CSSF until 31 January 2023. Non-compliance with this filing deadline will be considered a breach of the PRIIPs Regulation and the CSSF may impose sanctions accordingly.
  
  
• For now, the naming convention/procedure for the filing will remain the same as for UCITS KIIDs (Circular CSSF 19/708 and Circular CSSF 11/509).
  
  
• There is no need to provide a PRIIPs KID if the UCITS is no longer available to retail investors as of 1 January 2023 and changes to the existing commitments/investments are only subject to the contractual terms and conditions agreed before that date.
  
  
• Luxembourg retail UCITS whose offer is closed on 31 December 2022 are still required to update their UCITS KIIDs annually, even after 1 January 2023.
  
  
• UCITS made available to investors in non-EU countries may continue to draw up a UCITS KIID. However, the CSSF recommends verifying local rules and liaising with the local regulator of the countries where the UCITS is distributed, so as to be fully informed about applicable local requirements in terms of key investor information.
  
  

For those UCITS continuing with a UCITS KIID, the updated version of the CSSF’s FAQ on KIIDs continues to apply. Luxembourg UCITS reserved to professional investors or to investors outside the EU/EEA are within the scope of the updated FAQ on KIIDs, unless the manufacturer has decided to draw up a PRIIPs KID as set out in the PRIIPs Regulation.

For further information, please reach out to your usual contact within the Fund Formation Group.

The updated version of the CSSF FAQ on KIIDs is accessible here_

The updated version of the CSSF FAQ on the UCI Law is accessible here_