LUXEMBOURG Law and Practice Contributed by: Evelyn Maher, Gaston Aguirre Draghi and Djelloul Mansour, BSP
deductions, all such units or shares held by Luxembourg investors; • the intention to terminate arrangements made for marketing such units or shares is made public by means of a publicly available medium; and • any contractual arrangements with financial intermediaries or delegates are modified or terminated, with effect from the date of de- notification, in order to prevent any new or further direct or indirect offering or placement of such units or shares. The de-notification procedure is carried out through the home supervisory authority of the AIFM, which then informs the CSSF. However, if an AIFM intends to cease the mar - keting of its non-Luxembourg AIF to retail inves - tors in Luxembourg, it must inform the CSSF about whether Luxembourg investors are still invested in the AIF. 2.3.10 Investor Protection Rules SIFs, SICARs and RAIFs are intended for well- informed investors that are able to adequately assess the risks associated with an investment in such vehicles. Part II UCIs can be marketed to retail investors, but the applicable investment restrictions, in addition to the fact that they are supervised by the CSSF, adds to investor protection. The fact that all AIFs bar the unregulated SLP must appoint a depositary and an auditor pro - vides additional protection for investors. Any AIF managed by an authorised AIFM needs to provide audited annual accounts that, in the case of regulated AIFs, need to be provided to
the CSSF. The CSSF is also made aware of the content of the management letters. Additionally, such funds are required to dis - close certain information to investors pursuant to the rules of the AIFMD and inform investors of any changes thereto. The AIFMD imposes rules on preferential treatment of investors and disclosure thereto, and the valuation of an AIF’s assets must be carried out in accordance with such rules. AIFMs are also required to have risk manage - ment, liquidity management and conflict of inter - est policies in place, all of which serve to add to the protection of investors. Part II UCIs must, in addition, produce a half- yearly report for submission to the CSSF. All of the regulated funds are subject to regular reporting to the CSSF, to enable it to carry out its supervisory function. In the case of a dispute with a Part II UCI, a retail investor can request the CSSF to impar - tially intervene for an out-of-court resolution, though its out-of-court decision is not binding on the parties. In accordance with CSSF Circular 24/856, which replaces CSSF Circular 02/77 from 1 January 2025, AIFs that are regulated entities must have in place policies and procedures to deal with net asset value (NAV) calculation errors, investment breaches and other errors. Such policies and procedures are in place to ensure protection of investors in the case of errors and the correction of such errors.
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