Marketing of foreign UCIs to retail investors in Luxembourg

CSSF Regulation 20-10 has been applicable since 1 January 2021. This Regulation lays down the procedures of the Law of 17 December 2010 on undertakings for collective investment (“UCIs”) with regard to the marketing of foreign UCIs other than the closed-end type to retail investors in Luxembourg.

For the purpose of this Regulation, "Foreign UCIs other than the closed-end type" ("Foreign UCIs") means UCIs other than UCITS and other than UCIs for which there is no redemption right for investors.

Foreign UCIs must, prior to the marketing of their units or shares to of retail investors in Luxembourg, have authorisation for such marketing which is granted by the CSSF in accordance with the conditions set forth in the Regulation.

Specific information and documents must be provided to the CSSF and in addition, Foreign UCIs must comply with the following rules in order to be eligible for marketing to retail investors in Luxembourg:

• The issue/redemption prices must be determined regularly and at least once a month;
• The foreign UCI must justify a sufficient spread of risks (as specified in the Regulation).

When the Foreign UCI is an alternative investment fund (AIF), the marketing authorisation under the Regulation cannot be granted until the marketing notification procedure under the AIFM Law has been completed with professional investors.

Foreign UCIs authorised for marketing to retail investors before the application of the Regulation are automatically authorised under the Regulation.