Today, the Luxembourg regulator CSSF published a replacement for its circular 02/77 that dealt with procedures to be followed in case of a net asset value calculation error or breach of investment restriction, and subsequent compensation of investors. The new circular bears the number 24/856 (link to the circular in the comment section) and will apply as of 1st of January 2025.

It integrates a significant number of comments and questions received from the funds industry in the more than 20 years since the initial circular was published, and integrates the various FAQs the regulator had published. Most notably, it now explicitly applies to all types of investment funds available in Luxembourg and which were introduced since 2002, such as SIFs, RAIFs, ELTIFs or SICARs. Different rules apply to each type of such investment products, reflecting the difference in risk appetite and target investors.

This comprehensive update of administrative guidelines on such key aspects of the functioning of an investment fund are certainly welcome. The CSSF also mentioned during the recent ALFI conference that dedicated workshops and presentations will be offered by the regulator, in order to enable the industry to become familiar with the new rules.

Currently, the new circular is only available in French, an English translation will follow shortly.