LUXEMBOURG Law and Practice Contributed by: Evelyn Maher, Gaston Aguirre Draghi and Djelloul Mansour, BSP
that has been submitted and whether or not it is a first-time fund. Generally, the time ranges from three to six months. 3.3.5 Rules Concerning Pre-Marketing of Retail Funds Pre-marketing to Luxembourg retail investors is not allowed for UCITS funds and AIFs. 3.3.6 Rules Concerning Marketing of Retail Funds No notification or authorisation is required for the marketing of Luxembourg UCITS funds or Part II UCIs in Luxembourg. A UCITS fund located in another EEA country may be marketed in Luxembourg as soon as the home supervisory authority has duly noti - fied the CSSF of the intended marketing. Such EEA UCITS funds must provide facilities in Lux - embourg to facilitate the processing of subscrip - tion and redemption orders, and the provision of information. They need not appoint a third party or have a physical presence in Luxembourg (ie, facilities can be provided via the internet). An AIF located in a country other than Luxem - bourg may be marketed to Luxembourg retail investors in accordance with the provisions of CSSF Regulation 15-03, provided that, inter alia: • it is subject to ongoing supervision by its home supervisory authority; • it has obtained the authorisation of the CSSF for such marketing; • its NAV is calculated at least once a month; and • it follows certain risk diversification principles. Retail funds and AIFs marketed in Luxembourg to retail investors must provide these investors with a PRIIPs KID.
All marketing communications will need to com - ply with the requirements of Article 4 of Regula - tion 2019/1156 on facilitating cross-border dis - tribution of collective investment undertakings. CSSF Circular 22/795 requires investment fund managers to provide the CSSF with informa - tion regarding marketing communications. The CSSF will conduct testing to verify the compli - ance of such marketing communications with the requirements applicable under Article 4. Closed-ended funds marketed to Luxembourg retail investors must generally issue a prospec - tus in accordance with EU Regulation 2017/1129 on the prospectus to be published when securi - ties are offered to the public or admitted to trad - ing on a regulated market. 3.3.7 Marketing of Retail Funds Retail funds can be marketed to all investors located in Luxembourg, whether retail, profes - sional or institutional. However, a number of rules stemming from the MiFID may nevertheless restrict the marketing of retail funds through MiFID-regulated firms, as the investor profile of a retail investor must be in line with the type of retail fund being marketed (eg, it is not appropriate to advise a retail investor with a conservative risk profile to invest in a fund presenting higher risk). 3.3.8 Marketing Authorisation/Notification Process Notification or authorisation is required by the CSSF prior to the marketing of non-Luxembourg retail funds taking place. In the case of cross-border marketing of a UCITS fund, the notification process described in the foregoing must be complied with, and in the case of marketing a foreign investment fund
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