AIFMD implementation in Luxembourg – The CSSF publishes FAQs and signs 34 Cooperation arrangements

1) The CSSF publishes FAQs on AIFMD

On 18 June 2013 the Luxembourg Commission for the Supervision of the Financial Sector ("CSSF") published Frequently Asked Questions ("FAQs") on AIFMD. At the same time, they published various templates to be used when filing with them an application for authorisation of an AIFM established or to be established in Luxembourg.

The FAQs aim at highlighting some of the key aspects of the AIFMD regulation from a Luxembourg perspective. They are therefore primarily addressed to AIFMs and AIFs that are established in Luxembourg.

It is intended for these FAQs to be an evolving document to be completed by further Q&As, notably also as regards the impact on non-EU Managers managing Luxembourg AIFs.

These publications occur in anticipation of the adoption by Luxembourg parliament of the law implementing AIFMD, which is now expected to occur at the end of this month or in early July.

2) The CSSF signs 34 AIFMD Cooperation arrangements

Further to ESMA’s approval of centrally-negotiated co-operation arrangements with 34 non-EU securities regulators, the CSSF announced on 31st May 2013 by means of a Press Release that it has signed a Memorandum of Understanding ("MoU") with each of these non-EU authorities.

The execution of these agreements is an important step towards the full implementation of the AIFMD third country regime.

Most importantly, a Luxembourg AIFM can now delegate portfolio management functions to investment managers based in such non-EU countries, provided that they are effectively supervised by a competent authority in those countries and the other conditions for delegations set forth in Article 20 of the AIFMD are met (i.e. the conclusion of the MoU in itself is not sufficient).

As regards marketing, subject to compliance with other relevant AIFMD conditions, investment managers located in these non-EU countries will be allowed to develop marketing activities for EU and non-EU based AIFs in Luxembourg under the private placement regime until July 2015 and potentially with a passport thereafter.

These arrangements also cover co-operation in the cross-border supervision of non-EU depositaries.

ESMA continues to negotiate MoUs with other third-countries in order to meet the 22 July deadline for the implementation and application of the AIFMD.