New CSSF administrative practice concerning the holding of ancillary liquid assets by UCITS

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In adapting its administrative practice, the CSSF has provided clarification on the holding of ancillary liquid assets by UCITS under the Law of 17 December 2010 on undertakings for collective investment.

On 3 November 2021, the CSSF published an updated version of its FAQ on the Law of 17 December 2010 on undertakings for collective investment (the “FAQ on the Law of 2010”), and an updated version of its FAQ on Regulation (EU) 2017/1131 on money market funds (the “FAQ on the MMF Regulation”). These updates aim to clarify the circumstances under which, and the extent to which, UCITS are permitted to hold ancillary liquid assets.

Through its FAQ on the Law of 2010, the CSSF gave the following clarifications:


Furthermore, through its updated FAQ on the MMF Regulation, the CSSF clarifies that the 10% limit on deposits made by a money market fund with the same credit institution under article 17(1)(b) of the MMF Regulation applies to the holding of ancillary liquid assets under article 9(3) of the MMF Regulation. Ancillary liquid assets held by a money market fund are limited to 20% of its net assets.

The CSSF expects UCITS to comply with the conditions described in the FAQs as soon as possible, and by no later than 31 December 2022.

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

To access the CSSF FAQ on the Law of 2010, click here_

To access the CSSF FAQ on the MMF Regulation, click here_

Download the press release

Luxembourg Newsflash – New CSSF administrative practice concerning the holding of ancillary liquid assets by UCITS

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