Update of CSSF FAQs with respect to the PRIIPs KID

On 16 December 2022, the CSSF updated the following FAQs with respect to the PRIIPs KID:

• the FAQ concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment;
• the FAQ on the KIID;
• the FAQ concerning the Luxembourg Law of 12 July 2013 on alternative investment fund managers; and
• the FAQ concerning SIFs and SICARs that do not qualify as AIFs.

The new questions aim at clarifying:

1. manufacturers of Luxembourg AIFs as well as manufacturers of Luxembourg SIFs and SICARs that do not qualify as AIFs the units of which are being advised on, offered or sold to retail investors need to have in place a PRIIPs KID;
2. manufacturers of (i) Luxembourg UCITS that are made available to retail investors in the EU/EEA (“Luxembourg retail UCITS”) and/or of (ii) Luxembourg AIFs the units of which are being advised on, offered or sold to retail investors within the territory of the EU/EEA benefitting from the UCITS exemption expiring on 31 December 2022 need to have in place a PRIIPs KID as of 1 January 2023;
3. manufacturers of Luxembourg UCITS that are (i) reserved to professional investors and/or (ii) made available to investors outside of the EU/EEA may continue to draw up a KIID in compliance with the rules deriving from the UCITS Directive;
4. Luxembourg UCITS as well as non-Luxembourg UCITS that are registered for marketing to investors in Luxembourg need to file the PRIIPs KIDs that replace their KIIDs with the CSSF on 1 January 2023 but the CSSF will allow filings of such PRIIPs KIDs to be made until 31 January 2023 at the latest;
5. it is not possible to draw up and file a PRIIPs KID instead of a KIID prior to 1 January 2023;
6. the PRIIPs KIDs shall be filed with the CSSF, in electronic format, by strictly adhering to the instructions provided in Circular CSSF 19/708 and Circular CSSF 11/509 and by applying the nomenclature/naming convention detailed therein;
7. if a Luxembourg UCITS is no longer made available to retail investors as of 1 January 2023 and changes to the existing commitments are only subject to the contractual terms and conditions agreed before that date, a PRIIPs KID is not required;
8. manufacturers of Luxembourg retail UCITS whose offer is closed at 31 December 2022 are still required to annually update their KIIDs, even after 1 January 2023;
9. the CSSF FAQ on the KIID continues to apply to Luxembourg UCITS that are reserved to professional investors or to investors outside of the EU/EEA, unless the manufacturer thereof has decided to draw up a KID as set out in the PRIIPs Regulation (regarding Luxembourg retail UCITS, it may still be of relevance with a view to providing guidance on certain items, including those associated with the UCITS authorisation procedure as well as the filing, publication and translation requirements);
10. prior to issuing or proceeding with a notification for marketing a share class of a UCITS or compartment thereof, the UCITS must ensure that
    1. the CSSF has granted authorisation for the given UCITS, compartment thereof and related unit/share class;
    2. the CSSF has been informed of the launch date of the unit/share class concerned; and
    3. the relevant KIID has been filed with the CSSF pursuant to the applicable procedures;
11. the PRIIPs Regulation does not apply to manufacturers of and persons advising on or selling Luxembourg AIFs the units of which are solely being advised on, offered or sold to professional investors.