LUXEMBOURG Law and Practice Contributed by: Evelyn Maher, Gaston Aguirre Draghi and Djelloul Mansour, BSP
that is not a UCITS fund, there is an authorisation process to be complied with in accordance with CSSF Regulation 15-03. 3.3.9 Post-Marketing Ongoing Requirements Change in the Content of the UCITS Fund Marketing Notification Letter Where an amendment has an impact on the noti - fication letter sent to the CSSF via the UCITS fund’s home supervisory authority, at the time when the UCITS fund intended to market its units in Luxembourg or regarding a change in the share classes to be marketed in Luxembourg, the UCITS fund must directly inform the CSSF before implementing this amendment. De-Notification Investment fund managers may de-notify arrangements made for marketing as regards units or shares of some or all of their UCITS funds and/or AIFs marketed in Luxembourg, provided that: • a blanket offer is made to repurchase or redeem, free of any charges or 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, which then informs the CSSF. However, if an AIFM intends to cease the marketing of its non-Lux -
embourg AIF to retail investors in Luxembourg, it must inform the CSSF as to whether Luxem - bourg investors are still invested in this AIF. Other Ongoing Requirements Please refer to 3.3.10 Investor Protection Rules regarding reporting and other requirements. 3.3.10 Investor Protection Rules To ensure compliance with the regulatory frame - work and to detect any potential non-compli - ance, retail funds must produce the following reports: • an audited annual report; • an unaudited semi-annual report covering the first six months of the financial year; • a report in the case of NAV calculation error or non-compliance with applicable invest - ment rules (only intended for the CSSF); • a monthly financial report (only intended for the CSSF); and • an annual long-form report (only intended for the CSSF). In addition, UCITS funds must provide the CSSF with a semi-annual risk report, and their man - agement companies must have a remunera - tion policy and procedures designed to prevent conflict of interests and discourage risk-taking inconsistent with the risk profile of the managed UCITS fund. Furthermore, retail funds must appoint a cus - todian bank acting in the interests of investors and providing services as required by the UCI Law – ie, safekeeping of assets, cash monitoring and monitoring of retail funds’ compliance with the legal and regulatory framework. The appoint - ment of a custodian bank is ultimately intended to ensure protection of the fund’s assets.
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