Update of CSSF FAQ on CSSF Circular 22/811 on UCI Administrators

On 29 November 2023, the CSSF published an update to the FAQ concerning CSSF Circular 22/811 on UCI Administrators (“UCIA Circular”) by adding questions 3.3, 4 and 5.

As regards administration functions, the CSSF clarifies that when the UCIA is responsible for the net asset value (“NAV”) calculation and accounting function, the sole compilation/input of accounting information is not sufficient to comply with the UCIA duties, in accordance with the UCIA Circular. As an example, a UCIA should be in a position to challenge the NAV calculation and/or accounting related information provided by a delegate. In this respect, the CSSF further clarifies that non-substantial UCIA (i.e., letter-box entity) must be considered as contravening the conditions which the UCIA is required to meet in order to obtain and maintain its authorisation. In this context, delegation models leading to a UCIA solely compiling accounting information received from third parties or delegates are not compliant with the requirements of the UCIA Circular.

Another question regarding which sub-delegation models are compliant with the UCIA Circular is raised. The CSSF confirms that the UCIA may delegate UCI administration tasks to one or more entities (which may or may not be part of the group to which the UCIA belongs) under the requirements set out in the UCIA Circular and further advises the UCIA to ensure that its entire delegation model, including any potential sub-delegations, is/are based on objective reasons and does not generate additional or increased risks for the underlying UCIs.

The CSSF finally indicates, that a UCIA must file its first annual reporting containing information regarding its business activities and resources (as detailed in Annex B of the UCIA Circular) at the latest five (5) months after its financial year-end, starting from 30 June 2023.